Question

If you had a choice of going to the movies, going to the beach, or going to the mall, the opportunity cost of going to the movies would be:
a. Going to the beach and going to the movies.
b. Going to the mall and going to the movies.
c. Going to the mall if that is what you liked best.
d. Going to the beach and going to the mall.
e. Going to the one which took the least time to get to.

Answer 1

Answer:

c. Going to the mall if that is what you liked best.

Explanation:

When evaluating the opportunity cost of any move or event we consider the alternate option that was not taken because the other opportunity was chosen ahead of it. Here, the action that was chosen was going to the movies  and the opportunity cost of going to the movies would be what they liked or valued the most. Option c states that going to the mall if that is what you liked best and if they liked it best or most then it was most valued or preferred and therefore will be the opportunity cost of going to the movies.