As student reasons that "If I didn't go to class tonight, I would spend three hours at work where I earn $10 per hour. In addition, my annual parking permit costs the equivalent of $2 per day." The opportunity cost to that student of attending that class this evening is:
A)$0.
B)$2.
C)$30.
D)$32.

Question

As student reasons that "If I didn't go to class tonight, I would spend three hours at work where I earn $10 per hour. In addition, my annual parking permit costs the equivalent of $2 per day." The opportunity cost to that student of attending that class this evening is:
A)​$0.
B)​$2.
C)​$30.
D)​$32.

Quizplus · Accepted Answer

DThe opportunity cost includes both the earnings foregone by not working ($30 from 3 hours at $10 per hour) and the cost of parking ($2), totaling $32.

As Student Reasons That "If I Didn't Go to Class