While buying refreshments for an upcoming party, you notice that a six-pack of Bud Lite Beer costs $6 and that a six-pack of Miller Lite Beer costs $8. You buy the six-pack of Miller Lite Beer, although you wonder if maybe two six-packs of Bud Lite Beer would have been a better choice. The opportunity cost of the Miller Lite Beer is:
A)$8.
B)a six-pack of Bud Lite Beer.
C)two six-packs of Bud Lite Beer.
D)$8 and the six-pack of Bud Lite Beer.

Question

Quizplus · Accepted Answer

The opportunity cost of choosing the Miller Lite Beer over the Bud Lite Beer is what you give up by not choosing the alternative. In this case, for the $8 spent on Miller Lite, you could have bought two six-packs of Bud Lite Beer, making that the opportunity cost.

While Buying Refreshments for an Upcoming Party, You Notice That