Jimmy is very excited about the costume party with a 1990s theme.He is planning to dress up as MC Hammer but is also considering going as a lifeguard from Baywatch.His opportunity cost of arriving dressed like MC Hammer is:

Question

Quizplus · Accepted Answer

The opportunity cost of Jimmy arriving dressed like MC Hammer is giving up the alternative of dressing like a lifeguard because he cannot do both. Choosing one option means giving up the benefits of the other. The cost of parachute pants and the savings from not purchasing red swimming trunks are irrelevant since they do not affect his decision between the two costumes. Option D is incorrect because there is always an opportunity cost involved in any decision where a choice has to be made.

Jimmy Is Very Excited About the Costume Party with a 1990s