Question

What is the opportunity cost in this scenario?

Answer 1

The opportunity cost in this scenario is the three lost opportunities Harry experiences by deciding to go to his parents house. The term opportunity cost refers to the loss of potential gain from other alternatives when one alternative is chosen. The potential gain Harry may have lost by choosing to go to his parents for dinner instead could be relaxation while fishing, His house painting being finished, and time spent with his friends at the birthday party. These all can be considers lost opportunity due to choosing an alternate opportunity, that being dinner at his parents.  

Answer 2

Opportunity cost refers to a lost opportunity when an individual picks an alternate option. In this example, Harry gives up the chance to go fishing in order to see his parents. When dealing with opportunity costs, you must remember that a person's decision to do something (like going to see their parents) results in them missing out on something else (like going fishing).