If you have a choice about consuming bundle X or bundle Y, the opportunity cost of consuming bundle X is bundle Y.

Question

Quizplus · Accepted Answer

This is because the opportunity cost of choosing one option is the value of the best alternative option that you forego. In this case, the opportunity cost of consuming bundle X is bundle Y, which means that you give up the benefits or value that bundle Y would have provided if you had chosen it instead.

If You Have a Choice About Consuming Bundle X or Bundle