Question

You received $50 as a birthday gift chose to spend it on new wallpaper for your room. The opportunity cost of this decision is:

Answer 1

The opportunity cost of reaching $50 for your birthday and spending it on new wallpaper for your room is: not having money anymore but having wallpaper. Opportunity cost is defined as what you are giving up to gain something else. In opportunity cost, you are always making a decision out of possible alternatives. 

Answer 2

Answer:

There are actually a few different answers that I came up with... The price of the wallpaper that you bought, the other items that you could have purchased with your $50, and the time you could have spent doing other things.

Explanation:

Remember that an opportunity cost is the trade-off of purchasing one thing versus purchasing another thing. (DICTIONARY DEFINITION - the loss of potential gain from other alternatives when one alternative is chosen).

Hope that helps!!