A shirt was purchase for #500 instead of a pair of shoe what is the opportunity cost

Benefits derived by owing a pair of shoes

Explanation:

Opportunity cost is the forfeited benefit as a result of choosing one option over others. It represents the forgone advantage that would have been enjoyed if a decision was made in a certain way. Opportunity cost arises because people have to use scarce sources to meet different needs.

The opportunity cost of a decision is the value of the next best alternative. In this case, a shirt was preferred over a pair of shoes. The benefits associated with owning a pair of shoes is the opportunity cost. If the benefits of owning a shoe can be given a numerical value, that value would represent the opportunity cost.