Russell spends an hour studying instead of playing tennis.The opportunity cost to him of studying is
A) the improvement in his grades from studying for the hour.
B) 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 is the value of the next best alternative foregone. In this case, Russell's next best alternative to studying was playing tennis. By choosing to study, he gave up the enjoyment and exercise he would have received from playing tennis. Therefore, the opportunity cost of studying is C) the enjoyment and exercise he would have received had he played tennis.

Russell Spends an Hour Studying Instead of Playing Tennis