While buying refreshments for an upcoming party,you notice that a six-pack of Americana Beer costs $2 and a six-pack of Bavarian Beer costs $4.You buy the six-pack of Bavarian Beer,although you wonder if maybe two six-packs of Americana Beer would have been a better choice.The opportunity cost of the Bavarian Beer is:
A)$4.
B)a six-pack of Americana Beer.
C)two six-packs of Americana Beer.
D)$4 and the six-pack of Americana Beer.

Question

Quizplus · Accepted Answer

The opportunity cost of choosing the Bavarian Beer over the Americana Beer is what you give up by not choosing the alternative. In this case, for the same $4, you could have bought two six-packs of Americana Beer instead of one six-pack of Bavarian Beer. Therefore, the opportunity cost is two six-packs of Americana Beer.

While Buying Refreshments for an Upcoming Party,you Notice That a Six-Pack