Amy can study for an hour or spend that hour sleeping or going out for dinner. If she decides to study for the hour, the opportunity cost of the hour spent studying is
A)definitely going out to dinner because she must eat at some time.
B)definitely going to sleep.
C)sleeping or going out for dinner, whichever she would have preferred the most.
D)sleeping and going out for dinner.
E)studying since this is the choice she opted for.

Question

Quizplus · Accepted Answer

The opportunity cost is the value of the next best alternative that is foregone. In this case, it's the activity Amy would have preferred the most between sleeping or going out for dinner.

Amy Can Study for an Hour or Spend That Hour