Your opportunity cost of going to a movie is

Question

a. the price of the ticket.
b. the total cash expenditure needed to go to the movie plus the value of your time.
c. the price of the ticket plus the cost of any soda and popcorn you buy at the theater.
d. zero, as long as you enjoy the movie and consider it a worthwhile use of time and money.

Answer 1

Your opportunity cost of going to a movie is best described by option b: the total cash expenditure needed to go to the movie plus the value of your time.

Opportunity cost refers to the value of the next best alternative that you forego when making a decision. In this case, it's not just the price of the ticket but also any other costs incurred (like snacks) and the value of what you could have been doing with your time instead.