You can spend $300 on either a pair of new Air Jordan sneakers or a new skateboard. If you choose to buy the Air Jordans, the opportunity cost is:
A)$300.
B)your enjoyment of the new skateboard.
C)both the $300 and your enjoyment of the new skateboard.
D)impossible to determine.

Question

Quizplus · Accepted Answer

The opportunity cost is the next best alternative foregone by choosing one option over the other. In this case, if you choose to buy the Air Jordans, the opportunity cost is not the $300 you could have spent on the skateboard but rather your enjoyment of the new skateboard. Therefore, it is better to choose the option that aligns with your preferences and values, which may differ from person to person.

You Can Spend $300 on Either a Pair of New