Question

A consumer must decide between purchasing a new television or a new computer. If the consumer chooses the television, then what is the opportunity cost of this decision? (1 point) The opportunity cost is the difference in price between the television and computer. The opportunity cost is the consumer's benefit from purchasing the television. • The opportunity cost is the consumer's benefit from purchasing the computer. The opportunity cost is the difference between the benefit from purchasing the television and the benefit from purchasing the computer.

Answer 1

The opportunity cost is the consumer's benefit from purchasing the computer.

Explanation: opportunity cost equals the value of the next-best alternative forgone (here, the benefit the consumer would have gotten from the computer), not merely the price difference.