Kendra is trying to decide whether to go to Abby's house to watch a movie or to go to Samuel's house to play board games. They live about the same distance away, and there is no cost for either event. If she chooses to go to Abby's house, what is the opportunity cost?(1 point) Responses There is no opportunity cost because there is not cost associated with either option. Economics do not apply to this kind of decision. There is no opportunity cost because there is not cost associated with either option. Economics do not apply to this kind of decision. The difference in value to Kendra of the two options. The difference in value to Kendra of the two options. The net value to Kendra of going to Abby's house to watch a movie. The net value to Kendra of going to Abby's house to watch a movie. The net value to Kendra of going to Samuel's house to play games.
1 answer
The opportunity cost of Kendra choosing to go to Abby's house to watch a movie is the difference in value to Kendra of the two options. This means that the opportunity cost is the value or enjoyment she would have gained from going to Samuel's house to play board games instead of going to Abby's house. Opportunity cost refers to what is foregone when making a choice, so the correct answer is:
The difference in value to Kendra of the two options.
