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ss7ja [257]
3 years ago
11

Kevin has $20 to spend on summer clothes. He is looking at shirts, shorts, and flip-flops. Shirts are $10, shorts are $15, and f

lip-flops are $10. He buys one shirt because he thinks that buying the shirt is worth the opportunity cost of the shorts and the flip-flops. Which statement best evaluates his reasoning?
Mathematics
1 answer:
AlekseyPX3 years ago
8 0

Kevin has analyzed the situation well. However, he should also consider the fact that he saved $10 by only purchasing the shirt.Opportunity cost is the cost of the forgone alternative.out of the 3 choices, he only purchased 1 of the choices, the opportunity cost are the other two choices. However, he is still capable of buying the flip-flops costing $10 but he chose not to do so. He should consider it as a savings aside from it being a lost opportunity.




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