Russell spends an hour studying instead of playing tennis. What is the opportunity cost to him of studying?
A)the improvement in his grades from studying for the hour
B)the difference between the improvement in his grades from studying minus the enjoyment of playing tennis
C)the enjoyment and exercise he would have received had he played tennis
D)Zero, Since Russell chose to study rather than to play tennis, the value of studying must have been greater than the value of playing tennis

Question

Quizplus · Accepted Answer

Opportunity cost refers to the benefits or potential gains that a person gives up when making a choice. In this scenario, the opportunity cost of studying is the enjoyment and exercise he would have received had he played tennis. This is because Russell had to sacrifice his time and opportunity to play tennis in order to study. Option A is incorrect as the improvement in grades from studying is not a cost, but a benefit. Option B is incorrect as it only considers the difference between two benefits, rather than a cost. Option D is incorrect because even though Russell chose to study, there is still a cost associated with making that choice, which is the opportunity to play tennis.

Russell Spends an Hour Studying Instead of Playing Tennis