Today, Julie attended her 12:30 Economics class. If she hadn't gone to class, Julie would have gone out to lunch with friends. She had other options; she could have worked or slept in. Julie's opportunity cost of going to class is the

Question

Quizplus · Accepted Answer

Opportunity cost refers to the value of the next best alternative that must be given up in order to pursue a certain action. In this case, Julie's opportunity cost of going to class is the lunch she gave up with her friends. This is because going to class meant she couldn't go out to lunch with her friends at the same time. Her income and sleep are not relevant in this scenario as they are not directly impacted by her decision to attend class or not.

Today, Julie Attended Her 12:30 Economics Class