The bold part is the answer to the question. Why is the answer for question 1 opportunity cost explicit plus implicit cost instead of the highest alternative which is just 20 dollars from the dog sitting job? For question number 2 the answer is the highest alternative. Not explicit plus implicit cost so why does it add all the cost for the first question and not the second question? They seem like the same question just different numbers but why are they solved differently?
1) Amy is thinking about going to the movies tonight. A movie
ticket costs $15, and she'll have to cancel a $20 dog-sitting job
that she would have been willing to do for free. The opportunity to
Amy cost of going to the movies is:
A) $20.
B) $35. C) $5. D) $15.
1)Jen spends her afternoon at the beach, paying $1 to rent a beach umbrella and $11 for food and drinks rather than spending an equal amount of money to go to a movie. Her opportunity cost of going to the beach is: 20) ______
A) the $12 she spent on the umbrella, food and drinks.
B) the value she places on seeing the movie plus the $12 she spent
on the umbrella, food and drinks.
C) the value she places on seeing the
movie.
D) only $0 because she would have spent $12 to go to the movie.
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