Exhibit 2-5
-Jose has one evening in which to prepare for two exams and can employ one of two possible strategies:
Strategy
Score in Economics
Score in Statistics
A
94
79
B
77
90
The opportunity cost of receiving a 90 on the statistics exam is ___________ points on the economics exam.
A)79
B)17
C)11
D)90

Question

Exhibit 2-5 
-Jose has one evening in which to prepare for two exams and can employ one of two possible strategies:
Strategy
Score in Economics
Score in Statistics
A
94
79
B
77
90
The opportunity cost of receiving a 90 on the statistics exam is ___________ points on the economics exam.
A)79 
B)17 
C)11 
D)90

Quizplus · Accepted Answer

The opportunity cost of receiving a 90 on the statistics exam is 94-77=17 points on the economics exam. Therefore, Jose should choose strategy B to maximize his overall score.

Exhibit 2-5 -Jose Has One Evening in Which to Prepare for Two