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Max bought a ticket to the championship baseball game for $170. Someone approaches him outside the stadium and offers him $365 for his ticket. If Max decides to go to the game, instead of selling his ticket, how much does it cost Max to go to the game?

a. $365

b. $195

c. $170

d. None of the above.

Answer :

Answer:

The answer in this instance, would be option a. or $365.

Explanation:

  • In this case, the original price of the baseball game ticket is $170 as paid by Max to buy the ticket and someone offered $365 to sell his ticket to that person.
  • Note that Max is basically giving up or sacrificing the opportunity of earning $365 as he decides to attend the game and not sell his ticket.
  • Therefore,in this case, the opportunity cost of attending the game by personally purchasing the ticket to Max would be $365 as he is foregoing the opportunity to earn additional $365 by refusing to sell his ticket and go to the game instead.

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