A student has two options: she can either surf the web or work part-time.Working part-time pays her $20 per hour.What is the student's opportunity cost of surfing the web for 5 hours?
A) $4
B) $20
C) $50
D) $100

Question

Quizplus · Accepted Answer

The opportunity cost of an action is the value of the next best alternative foregone. In this case, by choosing to surf the web for 5 hours instead of working part-time, the student foregoes earning $20 per hour for those 5 hours, totaling an opportunity cost of $100 (5 hours * $20/hour).

A Student Has Two Options: She Can Either Surf the Web