Answer to Question #284697 in Microeconomics for sss

Question

You were planning to spend Saturday working at your part-time job, but a friend asks you to go skiing. What is the true cost of going skiing? Now suppose you had been planning to spend the day studying at the library. What is the cost of going skiing in this case? Explain

Answer 1

In terms of opportunity costs. The cost of skiing in the first case is the cost of paying for a part-time job. In the second case, the cost of skiing is the cost of the knowledge gained, which is priceless.