A new fast-food restaurant offered a prize-a free meal (valued at $5)each week for a year-to its first 100 customers.Ramona camped out for 48 hours before the opening to be one of the first 100 customers,and she successfully obtained the prize.The cost to Ramona of obtaining the "free meal a week for a year" prize was:
A)zero.
B)$260.
C)whatever else she would have done with the 48 hours.
D)The cost is impossible to determine.

Question

Quizplus · Accepted Answer

The cost to Ramona is the opportunity cost of whatever else she could have done with her time (48 hours) instead of camping out for the prize. This is an example of an opportunity cost, which is the value of the next best alternative foregone as the result of making a decision.

A New Fast-Food Restaurant Offered a Prize-A Free Meal (Valued