Kamryn is deciding between three potential activities on Saturday evening: 1) Staying at home and watching her
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Question:
Kamryn is deciding between three potential activities on Saturday evening:
1) Staying at home and watching her favorite television show, an activity that she values at $18 and that entails no out-of-pocket costs.
2) Going to the movies with her sister to see the latest blockbuster action film, an activity she values at $30 and that entails $15 in out-of-pocket costs.
3) Going out to dinner with her best friend, an activity she values at $40 and that entails $23 in out-of-pocket costs.
What is Kamryn's opportunity cost of going to the movies?
Relative to her next best alternative, what is Kamryn's economic surplus from going to the movies?
Related Book For
Elementary Statistics
ISBN: 978-0538733502
11th edition
Authors: Robert R. Johnson, Patricia J. Kuby
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