Ted chooses to study for his economics exam instead of going to the concert.The concert he will miss is Ted's ________ of studying for the exam.
A)monetary cost
B)absolute cost
C)opportunity cost
D)discretionary cost
E)comparative cost

Question

Quizplus · Accepted Answer

The term "opportunity cost" refers to the value of the best alternative that must be foregone as a result of a decision. In this case, Ted is giving up the opportunity to attend the concert in order to study for his economics exam, so the cost of his decision is the enjoyment he would have received from the concert. This cost is not a monetary cost (A), absolute cost (B), discretionary cost (D), or comparative cost (E).

Ted Chooses to Study for His Economics Exam Instead of Going