Economics Question?

Question

1)The local mall has free parking,but the mall is always very busy,and it usually takes 30 minutes to find a parking space.Today when you found a vacant spot,Harry also wanted it.Is parking really free in this mall?If not,what did it cost you to park today?When you parked your car today,did you impose any cost to Harry?Explain your answers.
2)The university has built a new movie threatre.Admission for students is free and there are always plenty of empty seats.But when the threatre screened "The Lord of the Ring",the lines are long.So the threatre decided to charge $4 per student.Cadbury Schweppers offered students a free soft drink.Compare a student's opportunity cost of seeing the movie The Lord of Ring with that of any other movie screened this year.Which is less costly and by how much?
Thanks very much.

Answer 1

Parking is not free. It is free monetarily, but there is an opportunity cost. You have to spend 30 minutes searching for a parking spot. So, the opportunity cost of the parking space is what you could do with 30 minutes of your time, such as work, watch tv, sleep, etc. Since Harry also wanted your spot, you imposed a cost on him when you parked. He now has a bigger opportunity cost because he must keep searching for a parking space, eating up more of his time.

2. The opportunity cost of seeing the Lord of the Rings will be far costlier. Not only must one give up $4, but they must also give up a free drink offered somewhere else. Now, if the drink is offered at the theatre, then the cost is $4- the cost of the drink. It likely would still be costlier for Lord of the Rings, since the drink does not likely cost $4, and the lines would still be somewhat longer.