Question

Katherine has a physics exam tomorrow. However, a free lecture by one of her favorite authors is taking place this evening. Katherine decides to attend the lecture instead of studying for her exam. Which is a correct statement?
Katherine's opportunity cost is the cost of getting to the lecture event itself plus the reduction in her physics exam grade by not studying tonight. T/F

Answer 1

Answer:

Katherine's opportunity cost is the cost of getting to the lecture event itself plus the reduction in her physics exam grade by not studying tonight. True

Explanation:

Opportunity cost is the cost of foregoing a benefit or incurring loss due to opting an alternative which is next beneficial . Here Katherine is losing in terms of grades in her exam to take the benefit of listening to the lecture , So loss to her grade is the opportunity cost of attending to the lecture and getting benefited.