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Basile [38]
3 years ago
11

Anya got $12 for her birthday. She considers buying a DVD of her favorite movie for $11. She also thinks about buying a new T-sh

irt for $14. Then she decides to buy a CD for $10. What is the opportunity cost of her decision? Explain your answer.
History
1 answer:
mafiozo [28]3 years ago
7 0

Here we have two different decisions.<em><u> Opportunity cost</u></em> of buying the CD and not buying the DVD is 1: ($11-$10). And <em><u>opportunity cost</u></em> of buying the CD and not buying the new T-shirt is 4: ($14-10). <em><u>Opportunity cost</u></em> is the difference between the value of the option chosen and the value of the best option not made. If the option I choose gives me a benefit of 10 but there is an alternative option offered by 12, the opportunity cost is 2.

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