John has two hours of free time this evening.He ranked his alternatives,first go to a concert,second go to a movie,third study for an economics exam,and fourth answer his e-mail.What is the opportunity cost of attending the concert for John?
A) attending a movie
B) studying for an economics exam
C) answering his e-mail
D) attending a movie, studying for an economics exam, and answering his e-mail
E) going to the concert because that is what John choose to do

Question

Quizplus · Accepted Answer

The opportunity cost of an action is the value of the next best alternative forgone. Since attending a movie is John's second choice, it represents the opportunity cost of attending the concert.

John Has Two Hours of Free Time This Evening