From 8 to 11 p.m., Sam can either attend a basketball game, a hockey match or the symphony. Suppose that Sam decides to attend the hockey match and thinks to herself that if she did not go to the match she would go to the symphony. Then the opportunity cost of attending the hockey match is
A) going to the symphony and the basketball game.
B) going to the symphony.
C) going to the basketball game.
D) three hours of time.

Question

Quizplus · Accepted Answer

The opportunity cost of an action is the value of the next best alternative that is not chosen. Since Sam would have gone to the symphony if she hadn't attended the hockey match, the opportunity cost of attending the hockey match is the value of attending the symphony.

From 8 to 11 P