Dolores had €20 pocket money and was undecided whether to spend it on phone credit or a visit to the cinema - Junior Cycle Business Studies - Question 10 - 2017
Question 10
Dolores had €20 pocket money and was undecided whether to spend it on phone credit or a visit to the cinema. She decided to purchase phone credit.
(i) What was the ... show full transcript
Worked Solution & Example Answer:Dolores had €20 pocket money and was undecided whether to spend it on phone credit or a visit to the cinema - Junior Cycle Business Studies - Question 10 - 2017
Step 1
What was the opportunity cost involved?
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Answer
The opportunity cost involved is the enjoyment and experience that Dolores missed by not going to the cinema. Since she opted for phone credit instead, the opportunity cost is her decision of not attending the cinema.
Step 2
What was the financial cost involved?
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Answer
The financial cost involved is the total amount she spent on phone credit, which amounts to €20.
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