Answer to Question #310325 in Microeconomics for Ahmed

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 that 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

If I go skiing, then the loss of wages from the part-time job will be cost associated in terms of wages lost.

If I were to go skiing instead of going to the library, then the cost will be the cost related to skiing along with the value of the knowledge that would have been added in studying at the library. However, the value of knowledge addition cannot be measured in money terms. It can be measured in may be in terms of the cost of failing an exam and paying to for a resit and also the time wasted.