Jane decides to spend four hours working overtime rather than going to a family gathering. She earns $12.50 per hour for overtime work. Her opportunity cost of working is
A)the $50 she earns working.
B)the $50 minus the enjoyment she would have received from going to the family gathering.
C)the enjoyment she would have received had she gone to the family gathering
D)nothing, since she wanted to work more than she wanted to attend the family gathering

Question

Quizplus · Accepted Answer

The opportunity cost is the value of the next best alternative foregone, which in this case is the enjoyment she would have received from attending the family gathering.

Jane Decides to Spend Four Hours Working Overtime Rather Than