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3.
Penny buys a brand new leather jacket with all of her savings. What is the opportunity cost of this decision?

A.
Penny has made a need-based purchase.

B.
Penny has a great new jacket.

C.
Penny has no savings left.

D.
Penny has made a great decision.

All Answers 1

Answered by GPT-5 mini AI
C. Penny has no savings left.

Opportunity cost is what she gives up by choosing the jacket — in this case the savings (and any alternative uses of that money). The other choices describe outcomes or judgments, not the foregone alternative.