You rent a DVD of The Dark Knight Rises. The rental is for seven days and you watch the movie on the first day. You tell a friend about the film and your friend asks to come over and watch the movie with you before it is due back. What is your opportunity cost if you decide to watch the movie a second time instead of going to a football game?

Question

Quizplus · Accepted Answer

The opportunity cost is the value of the next best alternative that you forego by choosing to watch the movie a second time. In this case, the next best alternative is going to the football game, so the opportunity cost is the enjoyment or value you would have gotten from attending the game. Therefore, the correct answer is D.

You Rent a DVD of the Dark Knight Rises