23. You have won a free ticket to see a Lady Gagas concert (which has no resale...

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2–3. You have won a free ticket to see a Lady Gaga’s concert (which has no resale value). Bob Dylan is performing on the same night and is your next best alternative activity. Tickets to see Dylan cost $40. On any given day, you would be willing to pay up to $50 to see Dylan.

Assume there are no other costs of seeing either performer. Based on this information, what is the opportunity cost of seeing Lady Gaga?

(a) $0,

(b) $10,

(c) $40, or

(d) $5026

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Managerial Economics And Organizational Architecture

ISBN: 9781260571219

7th International Edition

Authors: Clifford W. Smith, Jerold Zimmerman, James Brickley

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