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Which of the following illustrates an opportunity cost?
James has enough money to buy some socks and a book.
Alyssa does not have enough time to study for her test.
Amir only has time to study or to play basketball.
Lydia does not have enough money to buy a new shirt.
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Amir only has time to study or to play basketball.
Explanation: opportunity cost is the next-best alternative you give up when you make a choice. Amir must choose one activity and forgo the other, so the forgone activity is his opportunity cost.
Explanation: opportunity cost is the next-best alternative you give up when you make a choice. Amir must choose one activity and forgo the other, so the forgone activity is his opportunity cost.
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