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George Receives $50 as a Birthday Gift

Question 46

Multiple Choice

George receives $50 as a birthday gift. In deciding how to spend the money, he narrows his options down to four choices: A, B, C, and D. Each option costs $50, but George values each option differently. Finally, he decides on C. What is the opportunity cost of C?


A) $50
B) $100
C) the value to him of options A, B, and D combined
D) the value to him of the option he would have chosen if C was not available

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