SOLUTION: Janice decided to go to the basketball game on Thursday night instead of working at the restaurant. What is her opportunity cost for this decision assuming she spent $24 in gas d

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Question 1169074: Janice decided to go to the basketball game on Thursday night instead of working at the
restaurant. What is her opportunity cost for this decision assuming she spent $24 in gas
driving to the away game and $8 at the concession stand? Janice normally works 5 hours
at the restaurant and makes $7 an hour plus tips. Her tips typically run about $35 on a
weeknight.
Answer by math_tutor2020(3816) (Show Source):
You can put this solution on YOUR website!

Opportunity cost is the value of what you give up when you make a decision. In this case, Janice's opportunity cost is the amount of money she would have earned if she worked instead of going to the basketball game.

She normally works 5 hours and makes $7 an hour, so she would have made 5*7 = 35 dollars
Adding on the tips means she would have made 35+35 = 70 dollars.

Answer: Opportunity cost = 70 dollars

Note: the other values don't factor into the opportunity cost since we only focus on what Janice would give up when she makes a certain decision.