Question Details

Economics Homework Help

Question

Janice has $150 to spend on concert tickets and/or movie tickets. Concert tickets are $25 each. Movie tickets are $12.50 each. Janice would like to purchase 4 concert tickets and 6 movie tickets. Can she?

A.Yes, she can borrow money in order to pay for the tickets.
B.Yes, she can afford both types of tickets.
C.No, the goods are outside of her budget and opportunity set.
D.No, she does not like spending money on concerts.

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An individual can choose to make lunch at home for a total cost of $5 per meal or can go out to lunch for a total cost of $12.50 per meal. What is the opportunity cost of going out to lunch?

The opportunity cost of buying lunch is __________ dollars.