During the next hour John can choose one of the following three activities: playing basketball,watching television,or reading a book.The opportunity cost of reading a book
A)depends on how much the book cost when it was purchased.
B)is the value of playing basketball if John prefers that to watching television.
C)is the value of playing basketball and the value of watching television.
D)depends on how much John enjoys the book.
E)is equal to the marginal benefit from reading the book.

Question

Quizplus · Accepted Answer

The opportunity cost of an activity is the value of the next best alternative forgone. If John prefers playing basketball over watching television, then the opportunity cost of reading a book is the value he places on playing basketball, since that is the most valued alternative he is giving up to read.

During the Next Hour John Can Choose One of the Following