The Taco Hut charges the same price for everything on its menu: $3 will buy a taco,a burrito,or nachos.You buy the taco and think that if you had not purchased the taco,you would have purchased the burrito.The opportunity cost of the taco is:
A)$3.
B)your enjoyment of the burrito.
C)$3 and your enjoyment of the burrito.
D)$3,your enjoyment of the burrito,and your enjoyment of the nachos.

Question

Quizplus · Accepted Answer

The opportunity cost is what you give up in order to make a choice. In this case, if you had not purchased the taco, you would have purchased the burrito instead. Therefore, the opportunity cost of the taco is the enjoyment you would have received from the burrito. Since the price of both items is the same, the $3 you spent on the taco is not considered part of the opportunity cost.

The Taco Hut Charges the Same Price for Everything on Its