Kim decides to go to the zoo on Tuesday afternoon. On Tuesday, Kim's boss assigns a new project due by the end of the day. Which of the following statements describes the opportunity cost of Kim using Tuesday to work on the project?

Question

Kim enjoys an afternoon at the zoo.
Kim's project will be late.
Kim gets fired from the job.
Kim will save the cost of the zoo ticket.

Answer 1

The opportunity cost of Kim using Tuesday to work on the project is best described by the statement: Kim enjoys an afternoon at the zoo.

Opportunity cost refers to the value of the next best alternative that is foregone when a decision is made. In this case, by choosing to work on the project, Kim gives up the enjoyment and experience of spending the afternoon at the zoo.