Trent decides to spend an hour playing basketball rather than studying. What is his opportunity cost?
A) The increase in skill he obtains from playing basketball for that hour.
B) Nothing, because he had a free pass into the sports complex to play basketball.
C) The benefit to his grades from studying for an hour.
D) Nothing, because he enjoys playing basketball more than studying.

Question

Quizplus · Accepted Answer

Opportunity cost refers to the value of the best option forgone in a decision. In this scenario, Trent's best alternative would have been to study for an hour. Therefore, the opportunity cost of his decision to play basketball is the benefit to his grades from studying. The other options do not represent the value of the best option forgone.

Trent Decides to Spend an Hour Playing Basketball Rather Than