Misty has the option of purchasing one of three products: Brand A, Brand B, or Brand C. Each costs ten dollars. If she decides that Brand A meets her needs best, then the opportunity cost of this decision is

Question

Quizplus · Accepted Answer

Opportunity cost is the value of the best alternative forgone. If Misty chooses Brand A, then the opportunity cost is the value of the next highest-value alternative forgone, which is either Brand B or Brand C depending on which one she would have chosen otherwise. Therefore, the correct answer is B.

Misty Has the Option of Purchasing One of Three Products