Which of the following statements is consistent with how changes in opportunity cost are expected to affect behavior?
A)The lower the opportunity cost of doing X, the more likely X will be done.
B)The lower the opportunity cost of doing X, the less likely X will be done.
C)The higher the opportunity cost of doing X, the more likely X will be done.
D)There is no relationship between opportunity cost and behavior.

Question

Quizplus · Accepted Answer

In economics, the opportunity cost is the cost of the next best alternative that must be given up in order to pursue a certain action. If the opportunity cost of doing X is low, meaning that there are few other attractive alternatives, then individuals are more likely to choose to do X. Therefore, as the opportunity cost of doing X decreases, the likelihood of doing X increases.

Which of the Following Statements Is Consistent with How Changes