Ted can study for his economics exam or go to a concert. He decides to study for his economics exam instead of going to the concert. The concert he will miss is Ted's ________ of studying for the exam.

Question

Quizplus · Accepted Answer

The opportunity cost of an action is the value of the next best alternative that is not chosen. In this case, the concert Ted misses represents the opportunity cost of studying for his economics exam, as it is the next best alternative he gives up to study.

Ted Can Study for His Economics Exam or Go to a Concert