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)

Question

Responses

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 Samuel's house to play games.
The net value to Kendra of going to Samuel's house to play games.

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.

There is no opportunity cost because there is not cost associated with either option. Economics do not apply to this kind of decision.

Answer 1

The correct response is:

The net value to Kendra of going to Samuel's house to play games.

Opportunity cost is the value of the next best alternative that is forgone when making a decision. In this case, if Kendra chooses to go to Abby's house, the opportunity cost is the enjoyment or value she would have received from going to Samuel's house instead.