Ryan spends an hour studying instead of going for a bike ride. The opportunity cost to him of studying is:

Question

Quizplus · Accepted Answer

The opportunity cost of Ryan's decision to study is the value of his next best alternative, which is going for a bike ride in this case. Therefore, the correct choice is (C), which states that the opportunity cost of studying is the enjoyment and exercise Ryan would have received had he gone on a bike ride. Option (A) is incorrect because it does not capture the value of the forgone bike ride. Option (B) is partially correct but misses the point that the enjoyment of the bike ride is itself the opportunity foregone, and the improvement in grades is irrelevant. Option (D) is incorrect because the fact that Ryan chose to study does not mean that the opportunity cost of studying is zero.

Ryan Spends an Hour Studying Instead of Going for a Bike