Ellie decides to spend two hours taking a nap rather than attending her classes.Her opportunity cost of napping is
A) the value of the knowledge she would have received had she attended class.
B) the $24 she could have earned if she had worked at her job for those two hours.
C) the value of her nap less the value of attending class.
D) nothing, since she valued sleep more than attendance at class.

Question

Quizplus · Accepted Answer

Ellie's opportunity cost is the value of the next best alternative, which in this case is attending her classes and receiving the knowledge she would have gained. Option B is not applicable as Ellie did not mention anything about working at a job. Option C is not accurate as the value of the nap cannot cancel out the value of attending class. Option D is incorrect as opportunity cost exists even if someone values one option more than the other. Therefore, option A is the best choice.

Ellie Decides to Spend Two Hours Taking a Nap Rather