Question
Kamryn is deciding between three potential activities on Saturday evening: 1) Staying at home and watching her favorite television show, an activity that she values
Kamryn is deciding between three potential activities on Saturday evening:
1) Staying at home and watching her favorite television show, an activity that she values at $18 and that entails no out-of-pocket costs.
2) Going to the movies with her sister to see the latest blockbuster action film, an activity she values at $30 and that entails $15 in out-of-pocket costs.
3) Going out to dinner with her best friend, an activity she values at $40 and that entails $23 in out-of-pocket costs.
What is Kamryn's opportunity cost of going to the movies?
Relative to her next best alternative, what is Kamryn's economic surplus from going to the movies?
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Elementary Statistics
Authors: Robert R. Johnson, Patricia J. Kuby
11th Edition
978-053873350, 9781133169321, 538733500, 1133169325, 978-0538733502
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