You can spend $100 on either a new economics textbook or a new CD player. If you choose to buy the new economics textbook, the opportunity cost is:
A)$100.
B)your enjoyment of the new CD player.
C)both the $100 and your enjoyment of the new CD player.
D)impossible to determine.

Question

Quizplus · Accepted Answer

The opportunity cost of choosing to buy the new economics textbook is the value of the next best alternative foregone, i.e. your enjoyment of the new CD player. Therefore, the best choice would depend on the individual's preferences and values. If they value their education and learning more than their enjoyment of music, they may choose to buy the textbook. However, if they value entertainment more than education, they may choose to buy the CD player.

You Can Spend $100 on Either a New Economics Textbook