Pizza Pizza once ran a promotion that whenever the Ottawa Senators scored six goals or more,...
Pizza Pizza once ran a promotion that whenever the Ottawa Senators scored six goals or more, Pizza Pizza gave everyone with a ticket to that day’s game a free slice of pizza. If holders of ticket stubs have to stand in line for ten minutes, is the slice of pizza really “free”?
Homework Answers
No, the slice of pizza is not "free" because there is alternative cost of waiting in line i.e. opportunity cost. The opportunity cost refers to value of the next highest valued alternative resource usage. Thus when holders of ticket stubs areas standing in line for some minutes they is an opportunity cost to it such as leisure time, hang out with friends, music and entertainment. Moreover there is money invested into buying the pizza ingredients. Thus there is no such thing as "free lunches" because a value is always added to it.
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Pizza Pizza once ran a promotion that whenever the Ottawa
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