Question

Will, Bill, and Phil decide to study an extra hour for an exam. Instead of studying, they could have gone out to eat, played football, or watched TV, respectively. Which of the following statements is correct?
A) The benefit the three students receive must be the same because they all make the same choice.
B) The students made a rational choice as long as they face no scarcity.
C) Each of the students could have different opportunity costs.
D) The marginal cost of the decision is the same if they make the same score on the exam.
E) Going out to eat, playing football, and watching TV are all called sunk costs.

Answer 1

Answer: C. Each of the students could have different opportunity costs

Explanation:

Opportunity cost is making a choice as against other options available, the students would have gone out to eat and play but they rather choose study.