Suppose you find R450.If you choose to use the R450 to go to a rugby match, your opportunity cost of going to the game is
A)nothing, because you found the money.
B)R450 (because you could have used the R450 to buy other things) plus the value of your time spent at the game.
C)R450 (because you could have used the R450 to buy other things) plus the value of your time spent at the game, plus the cost of the dinner you purchased at the game.
D)R450 (because you could have used the R450 to buy other things).
E)none of these answers.

Question

Quizplus · Accepted Answer

The opportunity cost of going to the rugby match is the value of the next best alternative foregone. In this case, the alternative is using the R450 to buy other things. Therefore, the opportunity cost is R450, plus the value of the time spent at the game. We do not need to consider the cost of dinner purchased at the game as it is not a relevant opportunity cost in this scenario.

Suppose You Find R450