Q. You and a friend decide to spend $100 each on concert tickets. Each of you alternatively could have spent the $100 to purchase a textbook, a meal at a highly rated local restaurant, or several Internet movie downloads. As you are on the way to the concert, your friend tells you that if she had not bought the concert ticket, she would have opted for a restaurant meal, and you reply that you otherwise would have downloaded several movies. Identify the relevant opportunity costs for you and your friend of the concert tickets that you purchased. Explain briefly.
Both of us have the same amount of resource: $100 each. If we decide not to purchase the concert ticket and choose the secondary best alternative respectively, each has different opportunity cost. For me, the opportunity cost is downlading internet movies with $100. In case of my friend, her opportunity cost is having a meal at a highly rated local restuarant with $100.
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