It takes Andy eight hours (including his lunch break) to write a report for the minister or three hours to take his cat to the vet.His opportunity cost of taking his cat to the vet is 2.7 hours.

Question

Quizplus · Accepted Answer

The opportunity cost of taking his cat to the vet is the value of the next best alternative forgone, which in this case is writing a report for the minister. Since it takes Andy eight hours to write a report, the opportunity cost of taking his cat to the vet is eight hours, not 2.7 hours.

It Takes Andy Eight Hours (Including His Lunch Break) to Write