A university student is faced with a difficult decision of how to spend 1 hour tonight.She could babysit her professor's child at an hourly wage of $7;she could work at the university library at a wage of $6;or she could finish her economics homework assignment.If she chooses to complete her homework assignment,she has incurred an opportunity cost equal to:
A) $7.
B) $6.
C) $13.
D) $0.

Question

Quizplus · Accepted Answer

The opportunity cost of completing her homework is the value of the next best alternative she forgoes, which is babysitting for $7.

A University Student Is Faced with a Difficult Decision of How