Aaron's budget is such that he can afford either a large-screen high-definition TV or a trip to Disney for his whole family, both of which cost the same. Which of the following statements about Aaron's opportunity cost is correct?
A)The opportunity cost of the Disney trip is the money Aaron pays for the trip.
B)The opportunity cost of the Disney trip is the same as the opportunity cost of the TV because Aaron can afford only one or the other.
C)There is nothing to say about the opportunity cost because we don't know how much the TV or the Disney trip costs.
D)The opportunity cost of the Disney trip is the loss from not being able to buy the TV.
E)The opportunity cost of either the TV or the Disney trip is the total cost of the TV and the Disney trip.

Question

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The Answer of Aaron's budget is such that he can afford either a large-screen high-definition TV or a trip to Disney for his whole family, both of which cost the same. Which of the following statements about Aaron's opportunity cost is correct?
A)The opportunity cost of the Disney trip is the money Aaron pays for the trip.
B)The opportunity cost of the Disney trip is the same as the opportunity cost of the TV because Aaron can afford only one or the other.
C)There is nothing to say about the opportunity cost because we don't know how much the TV or the Disney trip costs.
D)The opportunity cost of the Disney trip is the loss from not being able to buy the TV.
E)The opportunity cost of either the TV or the Disney trip is the total cost of the TV and the Disney trip.

Aaron's Budget Is Such That He Can Afford Either a Large-Screen