Let's break down the problem step-by-step to find out how much the event cost Max, including the opportunity cost.
1. Calculate Max's earnings from working:
- Max earns [tex]$7 per hour.
- He plans to work for 3 hours.
\( \text{Earnings from working} = 7 \text{ dollars/hour} \times 3 \text{ hours} = 21 \text{ dollars} \)
So, if Max works for 3 hours, he will earn $[/tex]21.
2. Calculate the cost of the ticket:
- The ticket for the sporting event costs [tex]$30.
3. Consider the opportunity cost:
- If Max chooses to go to the sporting event, he not only spends $[/tex]30 on the ticket but also forgoes the [tex]$21 he could have earned by working.
The total opportunity cost includes both the direct cost of the ticket and the lost earnings from not working.
Therefore, the total cost, including the opportunity cost, is:
\( \text{Total cost} = \text{Cost of the ticket} + \text{Earnings from working} \)
\( \text{Total cost} = 30 \text{ dollars} + 21 \text{ dollars} = 51 \text{ dollars} \)
So, if you include the opportunity cost, the event cost Max $[/tex]51.
