ECONOMICS
OPPORTUNITY COST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Mr. Prince gave his wife $150 to pay an electric bill instead of buying tickets to see the New York Yankees. What is the opportunity cost?
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Mr. Prince
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$150
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electric bill
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tickets to game
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Explanation:
Detailed explanation-1: -The correct answer is b. Benefits foregone by not choosing an alternative course of action. Opportunity cost is the future income or cost that would have been earned or incurred if this alternative was chosen. If not chosen, this would be the given up income or savings of that alternative.
Detailed explanation-2: -Opportunity cost refers to the value of the next best alternative.
There is 1 question to complete.