What is the cost of you attending the game?

A friend comes up to you and offers to give you a free ticket to the local professional team's baseball game that night. You decide to attend the game. It takes five hours to go to the game and costs you $15 for transportation. If you had not attended the game, you would have worked at your part-time job for $8 an hour.What is the cost of you attending the game?In economics, Total Cost = Monetary Cost + Opportunity Cost.



Here, the monetary cost is $15 (the transportation).

And the opportunity cost is what you gave up by going to the game: $8 x 5 hours = $40.



So the total cost is $55.



Because if you had worked instead of going to the game, you would have saved $15 and ALSO made $40. And in this sense, "a penny saved is a penny earned."



Get it?



(If you want to be a smart aleck, you can also point out to your teacher that the question omits the information about how much it costs for transportation to get to your JOB, and only gives information about how much it costs to get to the game. So maybe the total cost should be a little less than $55, because you have to deduct the transportation cost to get to your job!)

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