You decide to take a vacation and the trip costs you $2,000. While you are on vacation, you do not go to work where you could have earned $750. In terms of dollars, the opportunity cost of the vacation is

Question

Quizplus · Accepted Answer

The opportunity cost of the vacation includes both the actual cost of the vacation ($2,000) and the income you forego by not working ($750), totaling $2,750.

You Decide to Take a Vacation and the Trip Costs