Opportunity cost?

Question

In the production of a movie, a famous actor has to perform a dangerous action. The production company additonally employs a substitute to replace the actor in performing the dangerous action.

1)Define opportunity cost.

2)Using the concept of opportunity cost, explain why a substitute is additionally employed to replace the famous actor in performing the dangerous action.

Answer 1

The opportunity cost is the additional cost of that particular asset being utilised elsewhere.

In this case the actor is 'worth' more than the stunt man.  The stunt man can be replaced at minimal cost, the actor can't.... or would at least cost a lot more as they would have to re-shot the whole film.

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