posted by Maj .
Inreference to opportunity cost: If a snowstorm occurs who will most likely to attend a concert. Person A pays $5.00 for his ticket, whereas person B is a winner of a $5.00 concert ticket? What are the benefits/cost?
Good question. Think it through, then take a shot. Hint: Person A obviously values the concert itself at $5 or more (he voluntary traded a $5 bill for a ticket). How much does person B value his ticket?? And, can you say anything about each person's aversion (or additional costs) to traveling in a snowstorm?