Question

Katherine has a physics exam tomorrow. However, a free lecture by one of her favorite authors is taking place this evening. Katherine decides to attend the lecture instead of studying for her exam. Which is a correct statement? Katherine's opportunity cost of attending the lecture is: not relevant since no money is involved. the transportation and time cost of getting to the lecture itself plus the reduction in her physics exam grade as a result of not studying tonight. the time spent getting to the lecture. the time spent listening to the lecture.

Answer 1

Katherine's opportunity cost of attending the lecture is: the transportation and time cost of getting to the lecture event itself plus the reduction in her physics exam grade by not studying tonight.

Explanation:

The opportunity cost is the "cost" lost by not enjoying the benefit associated with the chosen alternative choice. People usually make use of opportunities to make themselves better.

The opportunity cost can be explained as giving up of profit or value to achieve something else. Opportunity cost is the value of giving up the best thing whenever you make a decision. When Katherine decided to attend the lecture of her favorite author, she lost her time, transportation cost and even scored low grade in physics exam as didn’t study on exam night.