Which of the following most accurately reflects the opportunity cost to a pharmacist who drives a taxi?
A) the dollars spent on his previously acquired education in pharmacy
B) the revenue derived from operating the cab
C) zero if the pharmacist received his education on a scholarship that paid his full tuition
D) the value of the pharmacist's time in its highest valued use other than driving a cab

Question

Quizplus · Accepted Answer

Opportunity cost is the value of the next best alternative foregone. For the pharmacist, this would be the value of his time if he were working as a pharmacist instead of driving a taxi.

Which of the Following Most Accurately Reflects the Opportunity Cost