Here are three things you could do if you do not attend your economics class: watch television with some friends (you value this at $25), read a good novel (you value this at $13), or go in to work (you could earn $20 during the economics class). The opportunity cost of going to your economics class is
A. $20, because this is the only alternative of the three where you actually receive a monetary payment.
B. $13, because this is the lowest valued alternative forfeited.
C. $25, because this is the highest valued alternative forfeited.
D. $58, because this is the total dollar sum of the alternatives forfeiteD.
Answer:C
Here are three things you could do if you do not attend your economics class: watch television with some friends (you value this at $25), read a good novel (you value this at $13), or go in to work (you could earn $20 during the economics class). The opportunity cost of going to your economics class is
A. $20, because this is the only alternative of the three where you actually receive a monetary payment. B. $13, because this is the lowest valued alternative forfeited. C. $25, because this is the highest valued alternative forfeited. D. $58, because this is the total dollar sum of the alternatives forfeiteD.