Example
Q: Suppose you have a free ticket to a concert by Band A. The ticket has no resale value. On the night of the concert your next-best alternative entertainment is a performance by Band B for which the tickets cost $40. You like Band B and would usually be willing to pay $50 for a ticket to see them. What is the opportunity cost of using your free ticket and seeing Band A?
A: The benefit you forgo (that is, the value to you) is the benefit of seeing Band B. As well as the gross benefit of $50 for seeing Band B, you also forgo the actual $40 of cost, so the net benefit you forgo is $10. So, the opportunity cost of seeing Band A is $10.[6]


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