Answer to Question #176692 in Microeconomics for Taym

Question

You were planning to spend Saturday working at your part-time job, but a friend asks

you to go watching movie.

a. What is the true cost of going for watching movie?

b. Now suppose you had been planning to spend the day studying at the library.

What is the cost of going watching movie in this case? Explain.

Answer 1

a. The true cost of going for watching movie is money that is not earned at your part-time job.

b. If you had been planning to spend the day studying at the library, then the cost of going watching movie in this case is studying something important at the library.