Question

Olivia was accepted by Northwestern and by another university. She is trying to decide where to go. Which of the following should influence her decision?

Answer 1

Answer:

- The difference between living expenses at Northwestern and her second choice but not how much she spent applying to Northwestern.

Explanation:

As per the description given, the 'difference between living expenses at Northwestern and her second choice but not how much she spent applying to Northwestern' as it exemplifies the opportunity cost that reflects the reason for capitulating the best alternative of 'expenses at Northwestern'(which is her best possible choice). Thus, if the amount spent on the second choice is lesser than her best alternative option then only the customer would be ready to bear the opportunity cost.