Cameron can spend his weekend afternoon doing one of three things: playing golf, driving his boat, or cleaning his house. Although he enjoys golfing, he sometimes becomes frustrated when playing so he decides to enjoy a more relaxing afternoon on his boat. Cameron never really considered the idea of cleaning the house, but he did give playing golf some serious thought. Cameron's opportunity cost of driving the boat is:

Question

Quizplus · Accepted Answer

The opportunity cost is the value of the next best alternative that is forgone in order to pursue a certain action. In this case, since Cameron chose to spend his afternoon on his boat, the opportunity cost is the enjoyment he would have gotten from playing golf, which he considered before choosing to drive his boat. Option A is not correct since having a messy house was never an option he considered. Option C is also not correct as it includes an option that he never considered. Option D describes his choice, but it is not the opportunity cost.

Cameron Can Spend His Weekend Afternoon Doing One of Three