John's budget is such that he can afford either a computer or a Caribbean vacation,both of which cost the same.Which of the following statements about his opportunity cost is correct?
A) The opportunity cost of a Caribbean vacation is the money John pays for the vacation.
B) The opportunity cost of the vacation is the same as the opportunity cost of the computer because John can afford only one or the other.
C) There is nothing to say about the opportunity cost because we don't know how much the computer or the Caribbean vacation costs.
D) The opportunity cost of going on a vacation is the loss from not being able to buy the computer.
E) The opportunity cost of the computer is the total cost of the computer and the Caribbean vacation.
Correct Answer:
Verified
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