The opportunity cost of building additional parking at your university is
A)the cost of the labour, concrete, etc.used to build the parking.
B)the value of the land used in its next best alternative use, and the cost of the labour, concrete, etc.used to build the parking.
C)the value of the land and resources used in all of their alternative uses.
D)infinite; we cannot estimate it.

Question

Quizplus · Accepted Answer

The opportunity cost of building additional parking at a university is not just the cost of construction materials and labor, but also includes the value of the land in its next best alternative use. This is because using the land for parking means it cannot be used for other purposes that may have been more valuable or productive, such as a new academic building or green space. Therefore, option B, which includes both the value of the land and the cost of building the parking, is the best choice.

The Opportunity Cost of Building Additional Parking at Your University