Jamie has enough money to buy either a Mountain Dew,a Pepsi,or a bag of chips.He chooses to buy the Mountain Dew.The opportunity cost of the Mountain Dew is
A)the Pepsi or the bag of chips,whichever is the highest-valued alternative forgone.
B)zero because he enjoys the Mountain Dew.
C)the Pepsi and the bag of chips.
D)the Mountain Dew.
E)the Pepsi,because it is a drink as is the Mountain Dew.

Question

Quizplus · Accepted Answer

The opportunity cost is the highest valued alternative forgone, which in this case is either the Pepsi or the bag of chips. So, the best choice is A.

Jamie Has Enough Money to Buy Either a Mountain Dew,a