Question

Lili spent $120 on a new sweater rather than using this money to buy her personal finance textbooks. The cost of doing without the textbooks is called the cost of buying the sweater. Group of answer choices

Answer 1

Answer:

opportunity cost

Explanation:

The opportunity cost is the cost that is incurred for purchasing any other thing in place of one thing or we can say it is a sacrification done to purchase another thing

Here in the question it is mentioned that the Lil spent $120 for purchasing a new sweater instead of buying her finance textbooks also the cost of buying the sweater is known as the non doing textbooks cost

So here it is a opportunity cost