Amy can study for an hour or spend that hour sleeping or going out for dinner.If she decides to study for the hour,the opportunity cost of the hour spent studying is
A)definitely going out to dinner because she must eat at some time.
B)sleeping or going out for dinner,whichever she would have preferred the most.
C)studying,since this is the choice she opted for.
D)definitely going to sleep.
E)sleeping and going out for dinner.

Question

Quizplus · Accepted Answer

The opportunity cost of an action is the next best alternative that is given up in order to pursue that action. In this case, if Amy decides to study for the hour, she is giving up the opportunity to either sleep or go out for dinner. The opportunity cost is whichever of those two options she would have preferred the most. Therefore, the correct answer is B.

Amy Can Study for an Hour or Spend That Hour