Question

Shane receives $100 as a birthday gift. In deciding how to spend the money, he narrows his options down to four choices: Option A, Option B, Option C, and Option D. Each option costs $100. Finally he decides on Option B. The opportunity cost of this decision is

Answer 1

Answer:

(a) the value to Shane of the option he would have chosen had Option B not been available

Explanation:

The options to this question wasn't provided. A similar question can be found here: https://www.chegg.com/homework-help/questions-and-answers/la2-maurice-receives-100-birthday-gift-deciding-spend-money-narrows-options-four-choices-o-q26490461

Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.

Shane's opportunity cost is the value of the option he would have chosen if he didn't choose option B.

I hope my answer helps you