Learn Before
Choosing Between a Paid Theatre Concert and a Free Park Concert
This scenario presents a choice between two mutually exclusive activities occurring at the same time: attending a theatre concert with a $25 admission fee (Option A), or going to a nearby park concert that is free of charge (Option B). This example is used to analyze economic decision-making by highlighting how to evaluate an option with a direct monetary cost against an alternative whose cost is the forgone enjoyment, which represents the opportunity cost.
0
1
Tags
Social Science
Empirical Science
Science
Economics
Economy
Introduction to Microeconomics Course
CORE Econ
Ch.2 Technology and incentives - The Economy 2.0 Microeconomics @ CORE Econ
The Economy 2.0 Microeconomics @ CORE Econ
Related
Comparing Alternatives in Decision-Making (Concert vs. Babysitting)
Decision-Making for a Taxi Driver (Australian Open vs. Work)
Choosing Between a Paid Theatre Concert and a Free Park Concert
Scarcity
Reservation Option
You have a free ticket to a concert tonight which you value at $50. You could, instead, work a shift at your job and earn $70, or you could babysit for a neighbor and earn $40. Assuming these are your only three options and you can only choose one, what is the opportunity cost of attending the concert?
Analyzing a Summer Decision
Evaluate the following statement: A person has three mutually exclusive options for their evening: 1) Go to a concert they value at $50, 2) Work a shift and earn $80, or 3) Read a book they value at $20. If they decide to work the shift, their opportunity cost is $70, representing the sum of the values of the concert ($50) and the book ($20) that they gave up. True or False?
For each economic decision described below, match it with the correct statement of its opportunity cost.
Analyzing the True Cost of a Decision
Explaining Opportunity Cost
A student has three mutually exclusive options for their Saturday afternoon: they can work a 4-hour shift at the campus library for $15 per hour, go to a movie with friends which they value at $40, or take a paid online survey that will earn them a total of $50. If the student chooses to work at the library, the opportunity cost of this decision is $____.
An individual has decided to spend their Saturday afternoon working a part-time job. To correctly identify the opportunity cost of this decision, they must follow a logical process. Arrange the following steps into the correct sequence.
The Baker's Dilemma
Alex is deciding how to spend their Friday night. They can either go to a movie, for which a ticket costs $12 and which they value at $30, or they can work a tutoring session and earn $40. These are Alex's only two options. What is the opportunity cost of choosing to go to the movie?
Economic Profit vs. Accounting Profit
Decision making under scarcity
Shareholder Investment Principle
Economic Cost
Wage as the Opportunity Cost of Free Time
Karim's Work-Leisure Decision in Madrid
Economic Rent
Learn After
An individual has a non-refundable, pre-paid ticket to a movie that cost them $15. On the same evening, a friend invites them to a free outdoor music festival. The individual cannot attend both events. They estimate the enjoyment they would get from the movie is worth $20 to them, and the enjoyment from the free festival is worth $30. What is the opportunity cost of choosing to go to the free music festival?
Concert Choice Analysis
Economic Decision-Making: Work vs. Leisure
A student is deciding between two mutually exclusive events on a Friday night. They can either go to a theatre concert with a $25 ticket price, which they value at $40, or attend a free concert in the park, which they value at $30. Evaluate the following statement: 'From a purely economic standpoint, the student should choose the theatre concert because its net benefit ($40 value - $25 cost = $15) is positive.'
An individual is deciding between two mutually exclusive activities for their afternoon: attending a professional soccer game or going on a hike. The soccer ticket costs $40, and they value the experience at $70. The hike is free, and they value that experience at $50. Match each economic term to its correct value based on this scenario.
Economic Decision Analysis: Concert Choice
Economic Decision Threshold
Example of a Public Piano Performance
An individual is deciding between two mutually exclusive events happening at the same time. They can attend a theatre concert for a $25 fee, which they value at $60. Alternatively, they can go to a free concert in a park, which they value at $40. What is the total economic cost of choosing to attend the theatre concert?
Altering an Economic Decision
An individual is deciding between two mutually exclusive events occurring at the same time. They can attend a theatre concert for a $25 fee, which they value at $70. Alternatively, they can go to a free concert in a park, which they value at $50. The net economic benefit of choosing the theatre concert is $____.