Question

Here are three things you could do if you do not attend your economics class, watch television with some friends, read a good novel, or go in to work. The opportunity cost of going to your economics class is:________.
a. $20, because this is the only alternative of the three where you actually receive a monetary payment.b. $13, because this is the lowest valued alternative forfeited.c. $25, because this is the highest valued alternative forfeited.d. $58, because this is the total dollar sum of the alternatives forfeited.

Answer 1

Answer:

.c. $25, because this is the highest valued alternative forfeited

Explanation:

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

If I attend my economics class, the $25 I would be missing out on is the opportunity cost because it is the highest valued alternative (which indicates that it is the next best option) I forfeited.

I hope my answer helps you