Question

Maria goes on a shopping trip to get ready for her vacation. She loads her cart with a bathing suit for $15.00, a sun hat for $8.00, magazines for $8.00, and a beach towel for $7.00. When she gets to the register, she realizes she only has $20.00 in her pocket.

If Maria decides to purchase the sun hat and towel, what is the opportunity cost of her purchase? Select all that apply. There are two answers.

the sun hat
the towel
the magazines
the bathing suit

Answer 1

The opportunity cost is the value of the next best alternative that Maria could have chosen instead. In this case, if she decides to purchase the sun hat and towel, the opportunity cost would be the value of the next best alternative, which is the bathing suit and magazines. So, the opportunity cost of her purchase would be the bathing suit and the magazines. Therefore, the correct answers are:

- The bathing suit
- The magazines