Question

Suppose you have an hour before your next class starts. You can either read a book, get something to eat, or take a nap. The opportunity cost of getting something to eat is:_____a. The cost of what you eat b. The value of reading and sleeping c. The loss of value from not reading or sleeping d. The net benefit of sleeping for another hour e. Impossible to determine because the most preferred alternative is not known

Answer 1

The right option is E.

Explanation:

According to the definition, the opportunity cost of getting something or achieving a certain goal involves we are supposed to choose among the best possible alternatives. In this case, option E is more accurate because we do not know which are the said most valuable alternatives.

Answer 2

Answer:

c. The loss of value from not reading or sleeping

Explanation:

Opportunity cost refers to the value of the best alternative that is not selected. In that respect, even though it is not clear which alternative is favored , and the question only asks about the opportunity cost of eating, then the cost of value can be deduced to be related to the choices that were not selected, which in this case are reading and sleeping.