The opportunity cost of building an additional car park at your university is:

Question

Quizplus · Accepted Answer

The opportunity cost of building an additional car park at the university is the value of the land used in its next best alternative use, and the cost of the labour, concrete, etc. used to build the car park. By building the car park, the university foregoes the potential benefits of using the land for other purposes, such as building additional academic buildings or recreational facilities. Therefore, the opportunity cost includes both the explicit cost (the cost of building the car park) and the implicit cost (the foregone opportunity to use the land in its next best alternative use).

The Opportunity Cost of Building an Additional Car Park at Your