Ramona decides to spend two hours taking a nap rather than attending her classes.Her opportunity cost of napping is
A)the value of the knowledge she would have received had she attended class.
B)the $24 she could have earned if she had worked at her job for those two hours.
C)the value of her nap minus the value of attending class.
D)nothing,since she valued sleep more than attendance at class.

Question

Quizplus · Accepted Answer

Opportunity cost is the value of the next best alternative forgone. In this case, Ramona chose to take a nap instead of attending her classes. Therefore, the opportunity cost of napping is the value of the knowledge that she would have received had she attended class. Option A is the best choice since it accurately reflects the concept of opportunity cost in this scenario. Option B is not relevant as it assumes that Ramona has a job and would have worked during that time. Option C is also not accurate as it suggests that there is a value to napping that needs to be subtracted from the value of attending class. Option D is not a valid choice as it assumes that opportunity cost does not exist if Ramona chooses to nap.

Ramona Decides to Spend Two Hours Taking a Nap Rather