Sujata has a stopover in Iceland and can choose one of three tours: visit the thermal springs, hike the glaciers, or view the Northern Lights. If Sujata chooses the Northern Lights, her opportunity cost would be
A) the combined value of visiting the thermal springs and the glaciers.
B) zero as long as the Northern Lights was her top choice.
C) the value of visiting the thermal springs if that was her second choice after the Northern Lights.
D) the value of visiting the thermal springs if that was her last choice among the three tours.

Question

Quizplus · Accepted Answer

Opportunity cost is the value of the next best alternative foregone. If the thermal springs were her second choice, then that is the opportunity cost of choosing the Northern Lights.

Sujata Has a Stopover in Iceland and Can Choose One