Ali decides to attend the one-hour review session for microeconomics instead of working at his job.His job pays him $10 per hour.Ali's opportunity cost of attending the review session is
A) the $10 he could have earned at his job.
B) the value of the session minus the $10 he could have earned at his job.
C) nothing, because the review session does not cost anything.
D) equal to the benefit he gets from the review session.
E) the one-hour review session.

Question

Quizplus · Accepted Answer

Opportunity cost is the value of the next best alternative that is forgone, in this case, the next best alternative is working at his job and earning $10 per hour. Therefore, the opportunity cost of attending the review session is the $10 he could have earned at his job.

Ali Decides to Attend the One-Hour Review Session for Microeconomics