Ali decides to attend the one-hour review session for microeconomics instead of working at his job. His job pays him $10 per hour. Ali's opportunity cost of attending the review session is
A) the one-hour review session.
B) equal to the benefit he gets from the review session.
C) the $10 he could have earned at his job.
D) the value of the session minus the $10 he could have earned at his job.
E) nothing, because the review session does not cost anything.

Question

Quizplus · Accepted Answer

The opportunity cost is the value of the best alternative forgone. In this case, Ali's best alternative was to work at his job, which pays him $10 per hour. Therefore, his opportunity cost of attending the review session is the $10 he could have earned at his job.

Ali Decides to Attend the One-Hour Review Session for Microeconomics