Carmen bought a $150 ticket to attend the Outside Lands Music & Arts Festival in
ID: 1189161 • Letter: C
Question
Carmen bought a $150 ticket to attend the Outside Lands Music & Arts Festival in San Francisco. Because it stars several of her favorite rock groups, she would have been willing to pay up to $300 to attend the festival. However, her friend Bessie invites Carmen to go with her to Monterey Bay Aquarium on the same day. That trip would cost $50, but she would be willing to pay up to $150. What is her economic cost (total opportunity cost) of going to the festival? Carmens total opportunity cost of attending the Outside Lands Music & Arts Festival is $ (Enter a numeric response using an integer.)Explanation / Answer
Total economic cost = Direct cost + Indirect cost which could have been saved
E.C. = $150 (paid for the ticket) + ($150-$50) (amount saved when she goes on the trip)
E.C. = $150+$100
E.C. = $250