Question

This weekend, Marcella can work at
Pets4U for $10 an hour for 6 hours
each day.
Alternatively, she could study for her
Economics and American Literature
tests which are both scheduled for
Monday, Marcella chooses to go to
work.
What is Marcella's opportunity cost
of her decision?
A) $120
B) Studying for her Economics and American
Literature Tests
C) Neither, since she will only benefit from this
choice

Answer 1

The opportunity cost of Marcella's decision to work at Pets4U is B) Studying for her Economics and American Literature Tests. This is because she is choosing to forgo the benefit of studying for her tests in order to work.