The opportunity cost of a new national park is the
A) cost of hiring staff and park rangers to provide services for visitors.
B) cost of constructing park buildings.
C) alternative uses for the land.
D) increased pollution to the wildlife habitat at the park.
E) cost of constructing highways to access the park.

Question

Quizplus · Accepted Answer

The opportunity cost of creating a new national park is the value of the best alternative land use. If the land is used for a national park, it cannot be used for other purposes, such as agriculture or development. Therefore, the value of those alternative uses represents the opportunity cost. The other choices (A, B, D, and E) represent actual costs associated with creating and maintaining a national park, but they do not represent the opportunity cost.

The Opportunity Cost of a New National Park Is the