Question

Which of the following must be true if an individual's next best alternative to going to the

Answer 1

Answer:

e. The opportunity cost of going to the movies is being better prepared for the exam

Explanation:

In Economics, opportunity cost also known as the alternative forgone, can be defined as the value, profit or benefits given up by an individual or organization in order to choose or acquire something deemed significant at the time.

Simply stated, it is the cost of not enjoying the benefits, profits or value associated with the alternative forgone or best alternative choice available.

Hence, the opportunity cost of a choice is the benefits that could be derived from another choice using the same amount of resources.

In this scenario, an individual's next best alternative to going to the movies is studying for a calculus exam. Therefore, the opportunity cost of going to the movies (alternative forgone) is being better prepared for the exam.