While buying refreshments for an upcoming party,you notice that a six-pack of Canadian Beer costs $2 and a six-pack of Bavarian Beer costs $4.You buy the six-pack of Bavarian Beer,although you wonder if maybe two six-packs of Canadian Beer would have been a better choice.The opportunity cost of the Bavarian Beer is:
A) $4.
B) the six-pack of Canadian Beer.
C) two six-packs of Canadian Beer.
D) $4 and the six-pack of Canadian Beer.

Question

Quizplus · Accepted Answer

The opportunity cost of choosing the Bavarian Beer is what you give up, which is two six-packs of Canadian Beer that you could have bought for the same $4.

While Buying Refreshments for an Upcoming Party,you Notice That a Six-Pack