Question

Megan is training for a triathlon, a timed race that combines swimming, biking, and running. Consider the following sentence: In order to swim for an hour, Megan must take time away from work, where she earns $11 per hour. This is in addition to paying a $4 entrance fee for the pool. Which basic principle of individual choice do these statements best illustrate

Answer 1

Answer: 1) The cost of something is what you give up to get it

Explanation:

Because there is scarcity in the world, we cannot get everything that we want. This is what gives rise to opportunity costs which explain that the cost of doing something is the benefit that one would have accrued from their next best alternative or the thing they gave up for the first choice.

The cost of going swimming for an hour for Megan is $15 because she would have kept the $4 entrance fee she paid as well as earned $11 had she instead worked instead of swam.