Mikki decides to work five hours the night before her economics exam.She earns an extra $75,but her exam score is 10 points lower than it would have been had she stayed home and studied.Her opportunity cost of working more is the:

Question

Quizplus · Accepted Answer

The opportunity cost of working more is the next best alternative that Mikki sacrificed, which in this case is the 10 points she lost on her exam. This is because if she had studied instead of working, she would have scored 10 points higher on the exam. While she did earn $75 for working, this is not considered an opportunity cost since it is not a sacrifice of a next best alternative. The time she worked (option A) is not considered an opportunity cost either since it is the actual activity that she chose to do. The time she could have spent watching television (option D) and guilt she feels (option E) are not relevant to the calculation of opportunity cost in this scenario.

Mikki Decides to Work Five Hours the Night Before Her