You have the choice of going to Hawaii for a week, staying at work for the week, or spending the week skiing. If you decide to go to Hawaii, the opportunity cost is
A) the value of working and skiing.
B) the value of working or skiing, depending on which you would have done rather than go to Hawaii.
C) working, because you would be giving up a week's pay.
D) none of the above if you enjoy the time spent in Hawaii.

Question

Quizplus · Accepted Answer

The opportunity cost is the value of the next best alternative foregone. So, if you choose to go to Hawaii, the opportunity cost is the value of the next best alternative you would have chosen, which could be either working or skiing, depending on which one you would have preferred if you hadn't gone to Hawaii.

You Have the Choice of Going to Hawaii for a Week