Hamid spends an hour studying instead of watching TV with his friends.The opportunity cost to him of studying is
A)the improvement in his grades from studying for the hour.
B)the improvement in his grades from studying minus the enjoyment of watching TV.
C)the enjoyment he would have received if he had watched TV with his friends.
D)zero.Since Hamid chose to study rather than to watch TV,the value of studying must have been greater to him than the value of watching TV.

Question

Quizplus · Accepted Answer

The opportunity cost is the value of the next-best alternative not chosen. In this case, Hamid chose to study instead of watching TV with his friends. The opportunity cost to him is the enjoyment he would have received if he had watched TV with his friends, which is the value of the next-best alternative not chosen. Therefore, the best choice is C.

Hamid Spends an Hour Studying Instead of Watching TV with His