Related to the Economics in Practice on page 5: The opportunity cost to Mattel of having its Barbie doll assembled in China is
A) the low wages paid to Chinese workers.
B) the $2 export value the doll carries when it leaves Hong Kong.
C) the $8 of its $10 retail value which is captured in the United States.
D) having the Barbie doll assembled in the next best available location.

Question

Quizplus · Accepted Answer

The opportunity cost of an action is the value of the next best alternative forgone. In this case, it's the value or benefits Mattel would have received by having the Barbie doll assembled in the next best alternative location instead of China.

Related to the Economics in Practice on Page 5: the Opportunity