What would be the opportunity cost of a child using a coupon for a free ice cream cone?
A)The dollar cost of the cone he or she selected
B)The other types of ice cream he or she could have selected
C)Zero, because the good was not a durable good
D)Zero, because the good was free

Question

Quizplus · Accepted Answer

The opportunity cost of using a coupon for a free ice cream cone would be the other types of ice cream the child could have selected instead. Choosing one type of ice cream means giving up the opportunity to choose another type. This is the essence of opportunity cost. The fact that the good is not durable or that it was free does not affect the concept of opportunity cost.

What Would Be the Opportunity Cost of a Child Using