"If I didn't go to class tonight, I would save the $2 campus parking fee and spend three hours at work where I earn $10 per hour." The opportunity cost of attending class this evening is:
A)$0.
B)$2.
C)$30.
D)$32.

Question

"If I didn't go to class tonight, I would save the $2 campus parking fee and spend three hours at work where I earn $10 per hour." The opportunity cost of attending class this evening is:
A)​$0.
B)​$2.
C)​$30.
D)​$32.

Quizplus · Accepted Answer

The opportunity cost of attending class this evening is the value of the next best alternative, which is to work for three hours and earn $30 (3 hours x $10 per hour). By attending class, the student is giving up the opportunity to earn that money, so the opportunity cost is $30 plus the $2 parking fee, totaling $32. Therefore, the best choice is D.

"If I Didn't Go to Class Tonight, I Would Save