John chose to buy a pizza. If he had not bought the pizza, he would have bought either a hot dog or a burger. John's opportunity cost of buying the pizza is:
A) the hot dog
B) the burger
C) both the burger and the hot dog
D) whichever alternative, the hot dog or the burger, has the next highest value to John

Question

Quizplus · Accepted Answer

Opportunity cost is the value of the next best alternative foregone. In this case, it is whichever option (hot dog or burger) John values more after the pizza.

John Chose to Buy a Pizza