The five dollar Burger Joint gift card that your friend gave you for your birthday expires today. You can either use the gift card to buy yourself dinner at Burger Joint or you can stay home and eat a delicious home-cooked meal. What is the opportunity cost of eating the home-cooked meal?A. The value of a five-dollar dinner at Burger Joint.B. The value of the ingredients that go into the home-cooked meal and the value of a five-dollar dinner at Burger Joint .C. There is no opportunity cost since you did not pay for the gift card.D. The time it takes to eat your home-cooked meal and the value of the five-dollar dinner at Burger Joint.E. The value of the ingredients that go into the home-cooked meal.

Question

21-01-2020
Business

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The five dollar Burger Joint gift card that your friend gave you for your birthday expires today. You can either use the gift card to buy yourself dinner at Burger Joint or you can stay home and eat a delicious home-cooked meal. What is the opportunity cost of eating the home-cooked meal?A. The value of a five-dollar dinner at Burger Joint.B. The value of the ingredients that go into the home-cooked meal and the value of a five-dollar dinner at Burger Joint .C. There is no opportunity cost since you did not pay for the gift card.D. The time it takes to eat your home-cooked meal and the value of the five-dollar dinner at Burger Joint.E. The value of the ingredients that go into the home-cooked meal.

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jepessoa jepessoa · Answer 1 · 2020-01-25T01:21:48+01:00

Answer:

B) The value of the ingredients that go into the home-cooked meal and the value of a five-dollar dinner at Burger Joint .

Explanation:

Opportunity costs can be defined as the cost for choosing one alternative investment or action over another.

If you choose to use the five dollar gift card, you are going to eat for free, although you might not enjoy that meal as much as your delicious home made dinner.

But if you choose to eat a delicious meal at home, you are going to lose the five dollars of the give card and will have to spend a certain amount of money in making the dinner. Those same ingredients could be used to prepare dinner tomorrow. That is your opportunity cost of eating at home.