The opportunity cost to a consumer who smokes cigarettes consists of the:
A) Costs imposed on others who inhale second-hand smoke
B) Products that the consumer could have bought instead of cigarettes
C) Amount of cigarette-taxes paid by this consumer
D) Cost of complementary products such as lighters, ashtrays, and cigarette holders

Question

Quizplus · Accepted Answer

Opportunity cost refers to the value of the next best alternative that must be foregone in order to pursue a certain action. In the case of a consumer who smokes cigarettes, the opportunity cost is the value of the products (or services) that the consumer could have purchased instead of buying cigarettes. The other options listed (A, C, and D) may represent additional costs or consequences of smoking, but they do not reflect the opportunity cost of the decision to smoke.

The Opportunity Cost to a Consumer Who Smokes Cigarettes Consists