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Question 1169073: Graham decided to play football this year instead of getting a part-time job. Last year he
made about $1,100 during football season. He also spends about $9 on eating out after
each game. His team plays a 10-game season. What is his opportunity cost of playing
football?
Answer by CPhill(1959)   (Show Source):
You can put this solution on YOUR website! To calculate Graham's opportunity cost of playing football, we need to consider what he is giving up by choosing to play football instead of working.
Here's a breakdown of the costs and benefits:
**Benefits of playing football (that he had last year):**
* **Non-monetary benefits:** These are harder to quantify but could include enjoyment, exercise, social interaction, personal development, etc.
* **Potential monetary benefits this year:** The problem doesn't state he is making money playing football this year, only what he *could* have made at a part-time job.
**Costs of playing football (compared to a part-time job):**
* **Foregone income:** Last year, he made $1,100 during the football season. By playing again instead of working, he is giving up the potential to earn a similar amount (assuming the part-time job would have paid roughly the same).
* **Expenses related to football:** He spends $9 on eating out after each of the 10 games. This totals $9 \times 10 = $90.
**Calculating the Opportunity Cost:**
The opportunity cost is the value of the next best alternative forgone. In this case, it's the sum of what he could have earned and the money he spends directly due to playing football.
Opportunity Cost = Foregone Income + Football-Related Expenses
Opportunity Cost = $1,100 + $90
Opportunity Cost = $1,190
Therefore, Graham's opportunity cost of playing football this year is **$1,190**. This represents the total value of what he is giving up by choosing to play football instead of working a part-time job and accounting for his direct expenses related to playing.
**Important Note:** This calculation only considers the financial aspects mentioned in the problem. The true opportunity cost might also include the value Graham places on the non-monetary benefits of playing football. However, these are subjective and not quantifiable with the information given.
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