This is a traveshamockery!
Seriously, opportunity cost is one of the simplest, easiest to understand concepts in economics. I had almost exactly this question:
You won a free ticket to see an Eric Clapton concert (which has no resale value). Bob Dylan is performing on the same night and is your next-best alternative activity. Tickets to see Dylan cost $40. On any given day, you would be willing to pay up to $50 to see Dylan. Assume there are no other costs of seeing either performer. Based on this information, what is the opportunity cost of seeing Eric Clapton? (a) $0, (b) $10, (c) $40, or (d) $50.
On an introductory midterm in the first Econ class I ever took. Any professor, even drunk, and even not really thinking, should be able to get the answer correct. I got the right one in about 30 seconds because I took the time to read the question twice, it’s not hard. Gah.
It’s (b), jackass.
