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Unformatted text preview: that you work. What is the opportunity cost of going skiing? Do you need any other information before computing the opportunity costs? In general, the opportunity cost for any activity includes three things: the direct cost of the activity, plus whatever you give up in order to do the activity, minus whatever “savings” the activity generates
In this case, the direct cost of transportation, lift tickets and accommodation of $300 is
definitely included. The income of $120 that you give up also counts. Finally, we must
deal with the restaurant meals of $75. so that opportunity costs of skiing would be giving
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This note was uploaded on 01/20/2014 for the course ECON 105 taught by Professor Hanafiahharvey during the Summer '08 term at Simon Fraser.
- Summer '08
- Macroeconomics, Assignments