From 8 P.M. to 10 P.M., Susan can attend a movie, study, or talk with friends. Suppose that Susan decides to go to the movie but thinks that, if she hadn't, she would otherwise have talked with friends. The opportunity cost of attending the movie is
A) talking with friends and studying.
B) studying.
C) talking with friends.
D) two hours of time.

Question

Quizplus · Accepted Answer

The opportunity cost of a decision is the next best alternative foregone. Since Susan would have talked with friends if she hadn't gone to the movie, the opportunity cost of attending the movie is talking with friends.

From 8 PM to 10 P