You have the choice of going on vacation to Florida for one week, staying at work for the week, or spending the week doing fix-up projects around your house. If you decide to go to Florida, the opportunity cost of the trip is

Question

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The opportunity cost of an action is the value of the next best alternative that you give up by choosing that action. If you choose to go to Florida, the opportunity cost is what you would have done otherwise, which could be either working or doing fix-up projects, depending on which was your next best alternative.

You Have the Choice of Going on Vacation to Florida