John has two hours of free time this evening. He ranked his alternatives, first go to a concert, second go to a movie, third study for an economics exam, and fourth answer his e-mail. What is the opportunity cost of attending the concert for John?
A) attending a movie
B) studying for an economics exam
C) answering his e-mail
D) attending a movie, studying for an economics exam, and answering his e-mail

Question

Quizplus · Accepted Answer

The opportunity cost of an action is the value of the next best alternative foregone. Since attending a movie is John's second choice, it represents the opportunity cost of attending the concert.

John Has Two Hours of Free Time This Evening