Question

) the price of gasoline is $2.50 per gallon at the closest gas station, but is only $2.30 per gallon at a gas station two miles away. by driving to the farther gas station, the opportunity cost is

Answer 1

By definition, opportunity cost is the cost of the next alternative that you gave up because you choose another one. In this case, there are two alternatives: the closer gas station and the farther gas station. Because you chose the cheaper but farther gas station, then the opportunity cost is $2.50 for the closer gas station.