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.

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.