Suppose that you have won a free ticket to see Lady Gaga per…
Suppose that you have won a free ticket to see Lady Gaga performing live. Tickets normally sell for $100, but your free ticket has no resale value. You are really not a Lady Gaga fan—the most you would have been willing to pay for a ticket is $45! You really want to see Shania Twain in concert on the same night. If you choose instead to go to see Shania Twain, which is really more your style, your opportunity cost of missing the Lady Gaga concert is: