Last week Santiago found a new pair of red Nike Air Soles in the parking lot. He had just paid $120 to buy a pair of blue Nike Air Soles a few days earlier. A friend offers $80 to buy the pair of red Air Soles. Santiago says no and decides to keep both pairs for himself. The opportunity cost of this decision is

Question

Quizplus · Accepted Answer

The opportunity cost of Santiago's decision to keep the red Air Soles is the $80 he could have received from his friend for them, which he foregoes by keeping the shoes.

Last Week Santiago Found a New Pair of Red Nike