Log in
Economics
5
answers
0
watching
366
views

You have been invited by a friend to watch a movie. Before the invitation, you have thought about studying your lessons. The price of the movie ticket is $8. What is the opportunity cost of going to a movie theater?

A. The price of the movie ticket, $8.

B. The price of the movie ticket, $8 plus the time you could have spent studying.

C. The price of the movie ticket, $8 plus the cost of food and beverages you would buy in the movie theater.

D. There is no opportunity cost at all.

Watch
5
answers
0
watching
366
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share
Already have an account? Log in
Share
Already have an account? Log in
Share
Already have an account? Log in
Share
Romarie Khazandra Marijuan
Romarie Khazandra MarijuanLv10
24 Oct 2020
Already have an account? Log in
Share

Related textbook solutions

Principles of Economics
2nd Edition, 2017
Openstax
ISBN: 9781947172364
Principles of Macroeconomics
2 Edition,
Openstax
ISBN: 9781947172388
Principles of Microeconomics
2 Edition,
Openstax
ISBN: 9781947172340

Related questions

Your opportunity cost of seeing a movie is 

a. the price of the ticket 

b. the price of the ticket plus the price of soda and popcorn you buy at the theatre 

c. the total cash expenditure needed to go to the movie plus the value of your time 

d. zero as long as you enjoy the movie and consider it a worthwhile use of time and money

Ray loves going to the movie theater. There is always something Rays willing to see (or watch for a second or third time!). The table on the left shows Ray's total benefits (or total willingness to pay) associated with seeing movies at the movie theater for a period of one month. The table on the right shows Ray's marginal benefit. Notice that some of the information is missing from the"Marginal Benefit" column.

Total Number of Movies Total Benefit
1 $8.00
2 $14.50
3 $19.25
4 $22.00
5 $23.50

Movie Marginal Benefit
1st $8.00
2nd $ -
3rd $ -
4th $ -
5th $1.50

1) Suppose that movie tickets in Ray's town are priced at $5.00.How many movies will Ray choose to see in a month?
2) If the local theater in Ray's town lowers its price to $4.50, how many movies will Ray choose to view?
3)Assume that Ray's brother takes a job at the movie theater and is allowed to admit his family members at no charge. In this case, how many movies would Ray choose to see a month?

When family members were cleaning out my Great Aunt's house, they found this receipt for a radio-phonograph (with an LP player, which was brand new at the time). Using the tools developed in Chapter 16, I found that $223 in 1953 would equate to $1,960 in 2015. A modern system with speakers, AM/FM radio, CD, and an input for your iThing will run around $500 for one of good€ quality and $75 for something more like a boombox.

Question:

Think of a product or service that you currently enjoy. You should pick something simpler than my example, where there were too many price/quality variations. The title example (a movie ticket) is more comparable across time (but you can't pick that one).

(1) Ask an elder€ (parent, grandparent, aunt, etc) about the cost of that item when they were your age. (They can approximate, although they also need to give you a particular year.)

(2) Did the same product even exist? What is the closest substitute (as I had to, with the CD instead of a phonograph and an iThing input instead of an LP player)?

(3) Use the CPI calculator (at www.bls.gov/data/inflation_calculator.htm) to calculate the price in current dollars. Was the item more expensive or less expensive when your elder was your age?

Respond to one of your fellow student's examples. In your response, state the biases that might make their comparison seem off€.

For example, in the case of a movie ticket. . .

(1) There is substitution bias: Many people have improved “home theater systems” these days, whereas home entertainment back then meant card or board games. As the cost of movie tickets has risen, people have invested more money in home theater systems, instead of going out to the movies.

(2) There is also quality bias: Movie theaters have better sound and better film quality (even 3D) than what was available years ago. They even have cushier chairs that lean back farther.

Weekly leaderboard

Home
Homework Help 3,900,000
Economics 400,000
Start filling in the gaps now
Log in