You are standing in line. Think about what you would be doing if you are not in

Question

You are standing in line. Think about what you would be doing if you are not in this line. The alternatives are infinite and computing the cost of them all is impossible. However, since you could only be doing one thing (not all of them) if you are not in this line, determining the opportunity cost requires only knowing the one thing you would be doing. Calculate (in $$$) your opportunity costs of standing in line.

Please give detailed example of opportunity costs. It should be supported by calcuation (in $$$) of opportunity costs.

Explanation / Answer

Suppose I am standing in line for say X hours. If not standing in line, I have the option of using this time to work part-time at a pizza delivery shop. The pizza delivery shop pays $20/hour for the position.

Hence, my opportunity cost of standing in line is $20 * X hours = $20 * X

If X = 1 hour, then my opportunity cost of standing in line for an hour is $20.

If X = 2 hours, then my opportunity cost of standing in line for 2 hours is $40, and so on.

Also, note that this is the next best use of my time. Any other alternative, like doing chore for my parents, fetches me less than $20/hour.

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