Suppose you have four choices-go to a movie, read a book, watch television, or go to a concert. You choose to go to a movie. The opportunity cost of the movie is
A)the value of the book not read.
B)the value of the television program not watched.
C)the value of the concert that you didn't attend.
D)the value of the activity that you would have selected if you hadn't gone to the movie.

Question

Quizplus · Accepted Answer

The opportunity cost of an activity is the value of the next-best alternative that is forgone. In this scenario, the opportunity cost of going to the movie is the value of the activity that you would have selected if you hadn't gone to the movie. Therefore, the best choice(s) would be the activity that you would have selected if you hadn't gone to the movie (i.e., Option D - None of the above).

Suppose You Have Four Choices-Go to a Movie, Read a Book