From 8 P.M. to 10 P.M., Susan can attend a movie, study, or talk with friends. Suppose that Susan decides to go to the movie but thinks that, if she hadnʹt, she would otherwise have talked with friends. The opportunity cost of attending the movie is

Question

Quizplus · Accepted Answer

The opportunity cost is the value of the best alternative that must be given up in order to pursue a certain action. In this case, Susan gave up the opportunity to talk with friends in order to attend the movie. Therefore, the opportunity cost of attending the movie is talking with friends.

From 8 PM to 10 P