Suppose there are only three alternatives to attending a "free" social event: read a novel (you value this at $10),go to work (you could earn $20),or watch videos with some friends (you value this at $25).The opportunity cost of attending the social event is
A)$10.
B)$20.
C)$25.
D)$45.
E)$55.

Question

Quizplus · Accepted Answer

The opportunity cost of attending the social event is the value of the next best alternative foregone, which in this case is watching videos with some friends, valued at $25.

Suppose There Are Only Three Alternatives to Attending a "Free