If you spend $20 for your dinner, the opportunity cost is that you have forgone the possibility of using that money to buy gasoline for your car.

Question

Quizplus · Accepted Answer

Opportunity cost refers to the forgone alternative - the highest valued opportunity that is given up when choosing one option over another. In this case, the $20 spent on dinner means that you cannot use that money to buy gasoline for your car, which is an opportunity cost of choosing dinner over gasoline.

If You Spend $20 for Your Dinner, the Opportunity Cost