You are trying to make a decision regarding your impending holiday travel plans. You have flown into the major airport in Philadelphia in the past, but have always disliked the one-hour drive to your family's home. You have recently realized that you can fly into a local airport in Allentown, but at a somewhat higher price for the trip. You have been given the following three options for traveling home for the holidays (including all costs incurred for each option to arrive at the final total travel cost): You have narrowed your final selection down to flying nonstop, and must decide between the nonstop flight to Allentown or the nonstop flight to Philadelphia. What is the opportunity cost associated with this decision if you select the nonstop flight to Allentown option?
A) $40
B) $60
C) $100
D) $740

Question

You are trying to make a decision regarding your impending holiday travel plans. You have flown into the major airport in Philadelphia in the past, but have always disliked the one-hour drive to your family's home. You have recently realized that you can fly into a local airport in Allentown, but at a somewhat higher price for the trip. You have been given the following three options for traveling home for the holidays (including all costs incurred for each option to arrive at the final total travel cost):  You have narrowed your final selection down to flying nonstop, and must decide between the nonstop flight to Allentown or the nonstop flight to Philadelphia. What is the opportunity cost associated with this decision if you select the nonstop flight to Allentown option?
A) $40 
B) $60 
C) $100 
D) $740

Quizplus · Accepted Answer

Opportunity Cost = Cost of Nonstop flight to Allentown, $800 - Cost of Nonstop Flight to Philadelphia, $700 = $100

You Are Trying to Make a Decision Regarding Your Impending