Russell spends an hour studying instead of playing tennis.What is the opportunity cost to him of studying?

Question

Quizplus · Accepted Answer

Opportunity cost is the value of the next best alternative foregone, in this case, the enjoyment and exercise Russell would have received from playing tennis. The improvement in his grades (option A) is a benefit of studying, not an opportunity cost. The difference between improvement in grades and enjoyment of playing tennis (option B) is not a true opportunity cost because it suggests that there is some sort of trade-off that Russell can actually measure, which is not necessarily the case. Option D is incorrect because the value of studying being greater than the value of playing tennis does not negate the fact that there was an opportunity cost to his decision.

Russell Spends an Hour Studying Instead of Playing Tennis