Shirley can choose between peanut butter pretzels and caramel coated popcorns for her evening snack.According to economists,her _____ cost of consuming caramel coated popcorns would be the forgone peanut butter pretzels.

Question

Quizplus · Accepted Answer

The concept of opportunity cost is that the cost of a choice is the value of the next best alternative that must be forgone to pursue that choice. In this case, the opportunity cost of choosing caramel coated popcorns is the value of the peanut butter pretzels that could have been consumed instead. Therefore, the correct answer is B, opportunity cost.

Shirley Can Choose Between Peanut Butter Pretzels and Caramel Coated