Jimmy is invited to a costume party with a 1990s theme. His first thought is to dress up as MC Hammer, but he is also considering going as a lifeguard from Baywatch. The opportunity cost of arriving dressed like MC Hammer is:

Question

Quizplus · Accepted Answer

The opportunity cost of dressing like MC Hammer is the enjoyment he would have received if he had dressed like a lifeguard from Baywatch. Choosing one costume means giving up the benefits of the other. The cost of purchasing parachute pants or the money he saves on not buying red swimming trunks are not relevant to the opportunity cost. Option D is incorrect because there is always an opportunity cost when we make a decision.

Jimmy Is Invited to a Costume Party with a 1990s