A college student is faced with a difficult decision of how to spend one hour tonight.She could babysit her professor's child at an hourly wage of $7;she could work at the college library at a wage of $6;or she could finish her economics homework assignment.If she chooses to complete her homework assignment,she has incurred an opportunity cost equal to:
A)$7.
B)$6.
C)$13.
D)$0.

Question

Quizplus · Accepted Answer

The opportunity cost is the value of the next best alternative forgone. In this case, babysitting her professor's child for $7 is the highest-paying alternative she gives up to do her homework, making $7 the opportunity cost.

A College Student Is Faced with a Difficult Decision of How