Fred and Ann Are Both Given Free Tickets to See

question 131

Multiple Choice

Fred and Ann are both given free tickets to see a movie. Both decide to see the same movie. We know that

• A) both bear an opportunity cost of seeing the movie because they could have done other things instead of seeing the movie.
• B) both bear the same opportunity cost of seeing the movie because they are doing the same thing.
• C) it is not possible to calculate the opportunity cost of seeing the movie because the tickets were free.
• D) the opportunity cost of seeing the movie is zero because the tickets were free.

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Definitions:

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Financial statements that project the financial position and performance of a company based on expected income, expenses, and cash flows.

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The outcome of a company's operations and activities in terms of income, expenses, and profit over a specific period.