Fred and Ann both decide to see the same movie when they are given free tickets to it.We know that

Question

Quizplus · Accepted Answer

Both Fred and Ann had the option to do something else instead of watching the movie, so they both had an opportunity cost. Choosing to watch the movie meant sacrificing the opportunity to do something else, like reading a book or going for a walk. Option A is incorrect because even though they are doing the same thing, they still had the opportunity to do something else. Option B is incorrect because the cost of going to the movie is not related to the number of choices they had, but rather the value they place on those choices. Option D is incorrect because even though the tickets were free, they still had to sacrifice their time and the opportunity to do something else.

Fred and Ann Both Decide to See the Same Movie