Jim bought a new bike and rides it every day,while his old one sits in the garage untouched.Jimâ€™s opportunity cost of keeping the old bike is:

Question

Quizplus · Accepted Answer

Jim's opportunity cost of keeping the old bike is the value he could have gained from selling it, which would be the amount he could have received if he sold it in the market. Therefore, the correct choice is B, which says "whatever he could sell it for." A is incorrect because Jim's lack of interest in the old bike does not affect its opportunity cost. C and D are both partially correct, but B is the best choice because it specifically refers to the value of the old bike in the market.

Jim Bought a New Bike and Rides It Every Day,while