Question

Suppose you are scheduled to work at your job for 4 hours Friday night, where you make $10.00 per hour. However, once Friday arrives you decide to “call in sick” so you can go to the movies with your friends. At the movies, you spend $10 on a ticket and $15 on refreshments. How much did the night at the movies cost you?

Answer 1

Total cost = Hidden cost i.e opportunity cost + Money spent

Opportunity cost refers to a benefit that a person could have recieved, but gave up, to take another course of action.

Here opportunity cost is $10 per hour

Hours worked = 4 hours

Total opportunity cost = $10 * 4 = $40

Money spent = Cost of Ticket + Cost of Refreshment

                    = $10 + $15

                    = $25

Therefore, Total cost = $40 + $25

                                  = $65