Jen spends her afternoon at the beach, paying $1 to rent a beach umbrella and $11 for food and drinks rather than spending an equal amount of money to go to a movie. The opportunity cost of going to the beach is:

Question

Quizplus · Accepted Answer

The opportunity cost of Jen going to the beach is the movie she missed seeing. This is because she could have chosen to spend her money and time at the movie instead of the beach. The $1 she spent on the beach umbrella and $11 on food and drinks are sunk costs and not relevant to the opportunity cost.

Jen Spends Her Afternoon at the Beach, Paying $1 to Rent