Misty has the option of purchasing one of three products: Brand A, Brand B or Brand C. Each costs ten dollars. If she decides that Brand A meets her needs best, then the opportunity cost of this decision is

Question

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The opportunity cost of a decision is the value of the next best alternative that is not chosen. Since Misty can only choose one brand and she chooses Brand A, the opportunity cost is the value of the brand she did not choose but values the most out of the remaining options, which could be either Brand B or Brand C.

Misty Has the Option of Purchasing One of Three Products