Answer
The opportunity cost of seeing a movie involves the best alternative foregone by your decision to spend your time watching the movie. The time cost of watching the show depends on what else you might do with that time; if it is staying home and watching TV, the time cost may be small, but if it is working an extra three hours at your job, the time cost is the money you could have earned.
An even more extensive concept is of economic cost which involves opportunity cost along with the monetary cost. The economic cost is simply the aggregate of both monetary and opportunity cost and gives a better idea as to how much does an action really cost. In the given example the economic cost would be the monetary cost for admission into the movie theatre plus the time cost of spending two-three hours watching the movie.
Work Step by Step
The student can find the answer in principle #2 and the definition of opportunity cost in the same section as well.
