Skeeter's Skeeball Castle has seen its business slow down ever since Kerrie's Off-Key Karaoke opened up next door.Since the opening of Kerrie's Off-Key Karaoke,the opportunity cost of playing skeeball at Skeeter's has
A)decreased.
B)increased.
C)fallen to zero.
D)not changed.

Question

Quizplus · Accepted Answer

The opportunity cost of playing skeeball at Skeeter's has increased since the opening of Kerrie's Off-Key Karaoke. Opportunity cost is the cost of the next best alternative forgone while making a decision. With the availability of Karaoke at Kerrie's, customers now have an additional option, and some may prefer to go there instead of playing skeeball. Therefore, the opportunity cost of playing skeeball at Skeeter's has increased, as now customers have to give up the opportunity to do Karaoke at Kerrie's when they decide to play skeeball at Skeeter's.

Skeeter's Skeeball Castle Has Seen Its Business Slow Down Ever