Mikki decides to work five hours the night before her economics exam. She earns an extra $75, but her exam score is 10 points lower than it would have been had she stayed home and studied. Her opportunity cost of working more is the:

Question

Quizplus · Accepted Answer

The opportunity cost of working more is the value of the next best alternative that had to be given up, which in this case is the 10 points she lost on her exam. The guilt she feels is subjective and cannot be quantified, the $75 she earned is a benefit but not a cost, and the time she could have spent watching television is not relevant to the decision she made to work.

Mikki Decides to Work Five Hours the Night Before Her