It is a beautiful afternoon, and you are considering taking a leisurely stroll through the park. Your alternatives to walking are streaming a movie that you value at $5, taking a nap that you value at $7, or reading a new book that you value at $12. What is the opportunity cost to you of taking the stroll through the park?
A)$0
B)$5
C)$7
D)$12

Question

Quizplus · Accepted Answer

The opportunity cost of an action is the value of the next best alternative forgone. In this case, reading a new book, valued at $12, is the most valuable alternative forgone by taking the stroll, making it the opportunity cost.

It Is a Beautiful Afternoon, and You Are Considering Taking