1 You were able to purchase two tickets to an upcoming conce

1. You were able to purchase two tickets to an upcoming concert for $100 apiece when the concert was first announced three months ago. Recently, you saw that StubHub was listing similar seats for $225 apiece. What does it cost you to attend the concert?

Solution

ANSWER:

The amount paid prior is irrelevant to the associated costs now because being three months ago. If we perform an opportunity cost analysis that you do not attend, then can sell the tickets for $225 (ignoring any hassle costs and brokering fees), hence forego $450 (=$225*2Tickets) to attend the concert.