Murray receives $100 as a birthday gift.In deciding how to spend the money,he narrows his options down to four choices: A,B,C,and D.Each option costs $100,but Murray values each option differently.Finally,he decides on C.What is the opportunity cost of C

Question

Quizplus · Accepted Answer

Opportunity cost is the value of the next best alternative that has to be given up in order to choose a particular option. In this case, the opportunity cost of C is the value to Murray of the option he would have chosen if C was not available. Therefore, the best choice is A.

Murray Receives $100 as a Birthday Gift