Question

what may be the opportunity cost of building an airport

Answer 1

Answer:

Economists commonly place a value on time to convert an opportunity cost in time into a monetary figure. ... Accordingly, the opportunity cost of delays in airports could be as much as 800 million (passengers) × 0.5 hours × $20/hour—or, $8 billion per year.

Answer 2

The Opportunity Cost of producing any commodity is the following best alternative good that is given up to produce this good. Here, the cost of producing a particular quantity of a commodity is evaluated in terms of the quantity of some other commodity that could have been obtained instead.

The Opportunity Cost Of Building An Airport

• The economic burden has increased by $3 billion per year to deploy a sky marshal on every flight. Also, security equipment with superior sophistication costs around $2 billion while rising the safety of the cockpit doors will come at $450 million.

• Regardless, apart from the aforesaid explicit costs of increasing the security measures, the vastest opportunity cost will be in terms of rising waiting time at the airport for passengers. Researches show that an average passenger consumes an extra 30 minutes in security check since 9/11 and there are nearly 800 million air passengers in the US.

• If we contemplate $20 to be the average price of time for air passengers then security delays cost around $8 billion yearly.

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