what is the opportunity cost of going to the arcade on Saturday night assuming you could make $8 an hour for four hours of work and you also spend about $25 each time you go to the arcade?

Question

Jaelyn Brandt

Mathematics

13 February, 16:11

what is the opportunity cost of going to the arcade on Saturday night assuming you could make $8 an hour for four hours of work and you also spend about $25 each time you go to the arcade?

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Answers (1)

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Chessie · Answer 1

The opportunity cost is $32.

Step-by-step explanation:

Given information:

Earning for work from home = $8 per hour

Total expenses = $25 each time you go to the arcade

Opportunity cost : It is the value of the second best thing you give up whenever you chose best. In other word "the loss of potential gain from second choice when first is chosen".

In the given condition, the opportunity cost is the cost that you must forgo in order for going to arcade.

Earning in one hour = $8

Number of hours = 4

Earning for four hours of work = 4 * $8 = $32

Therefore the opportunity cost is $32.