1.

Consider the following facts:

Bob loves snow skiing. When he goes skiing, he pays $100 to rent equipment and he buys a lift ticket for $75. Bob wears a ski jacket that he bought last year for $125. Bob has a part time job. Each day he works he earns $120. Bob is a student at Colorado State, and he is passionate about his studies. Each day he spends studying provides him with a marginal benefit of $75. Bob was planning to spend the day studying in the library, but instead decides to go skiing to enjoy the two feet of fresh snow that fell overnight.

What is Bob's opportunity cost of going skiing? Provide a numerical answer and explain your answer.