Simon is given a free ticket to see Coldplay Saturday night

Simon is given a free ticket to see Coldplay Saturday night. He already has a ticket to see Sting in concert that night. The Sting ticket cost Simon $50 though he would have paid as much as $80 to go to the show. Simon knows that he can easily sell the Sting ticket on Craigslist for $60. What is his opportunity cost of seeing Coldplay?

Solution

Opportunity cost for Coldplay is $ 60 as Simon is expected to earn this amount by selling to other if he decides not to see the play. As he is going, he will loss the opporunity to earn or save $60.