Question

Sam wrote a list of how be would prefer to spend his Saturday afternoon.
go to a cricket match watch the artrual town parade
first choice
second choice thin choice
fourth choice
visit relatives
go to the cinema
Unfortunately a thunderstorm caused the cricket match and the town parade to be cancelled.
Sam went to the cinema.
What was the opportunity cost of going to the cinema?
going to a clicket match
watching the annual town parade
Ovisiting relatives
losing his Saturday free time

Answer 1

The opportunity cost of going to the cinema for Sam in this scenario was missing out on his first choice, which was going to a cricket match. Since both the cricket match and the town parade were cancelled due to a thunderstorm, the next best alternative that Sam had to give up was going to the cricket match.
Therefore, the opportunity cost of going to the cinema for Sam was not being able to attend the cricket match, his first choice.