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Opportunity cost is the value of the next best alternative in a decision. Imagine that you have $150 to see a concert. You ca

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Since you value Hot Stuff at $225 and Good Times at $150, this means that you value Hot Stuff concert more than Good Times. However, you pick Good Times concert because of other reasons. This implies that the opportunity cost of going for Good Times and not Hot Stuff is clearly shown in the difference in values that you place on both the concerts. This means, the opportunity cost will be $225-$150 = $75.

This means the opportunity cost of going to Good Times concert is $ 75.

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