Robert spends an hour studying instead of going hiking.What is the opportunity cost to him of studying
A)the improvement in his grades from studying for the hour
B)the difference between the improvement in his grades from studying minus the enjoyment of hiking
C)the enjoyment and exercise he would have received had he gone hiking
D)nothing, because Russell chose to study rather than to go hiking the value of studying must have been greater than the value of hiking

Question

Quizplus · Accepted Answer

The opportunity cost of studying for Robert is the enjoyment and exercise he would have received had he gone hiking. Opportunity cost is defined as the next best alternative that must be given up in order to pursue a certain action. In this case, Robert had to give up hiking to study, and the enjoyment and exercise he would have received from hiking is the opportunity cost of studying. Option A is not the opportunity cost, but rather the benefit of studying. Option B is partially correct as it includes the improvement in grades, but not the enjoyment of hiking which is the main opportunity cost. Option D is incorrect as opportunity cost exists even if one makes a choice based on a preference.

Robert Spends an Hour Studying Instead of Going Hiking