Question

On an afternoon that a class meets, you could alternatively study for an exam that will take place in another class the next morning, go to a movie with a friend, or, most desirable to you at present, take a nap. The opportunity cost of attending the afternoon class isA) forgoing the nap.B) missing seeing the movie with your friend.C) giving up the time to study for the next morning's exam.D) being unable to engage in all three of the above activities.

Answer 1

Answer:

D) being unable to engage in all three of the above activities.

Explanation:

An opportunity cost is the cost (or lost benefit) of choosing one activity or investment over another. In this case, if the student decides to attend afternoon class, he/she will not be able to benefit from:

• taking a nap
• seeing a movie with a friend
• studying for next morning's test

So all the three activities represent the opportunity cost of attending afternoon class.