Question

Suppose you paid $300 to take an economics course, which meets 30 times for one hour a class, during the course of the semester. Instead of attending class, you could have either flipped hamburgers for $8 an hour or waited tables for $5 an hour. Given this information, the opportunity cost of attending each class session is:a. $30.b. $8.c. $5.d. $13.

Answer 1

Answer:

Option (b) is correct.

Explanation:

Opportunity cost refers to the cost that is associated with the choice of a particular thing or object. It is the benefit that could be obtained from the next best alternative.

Here, the opportunity cost of attending each class session is the highest benefit from the opportunity that is sacrificed.

Therefore, the opportunity cost is $8 an hour from flipping hamburgers.