Saturday afternoon you can either attend a street festival, work and earn $100, or study for your midterm exam. You flip a coin between the street festival and studying, but did not really consider working. The coin flip determined that you would stay home and study. The opportunity cost of the time spent studying includes: Multiple Choice 1) the time you spent deciding upon using a coin flip to determine your Saturday afternoon activity 2) the benefit that could have been received at the street festiv 3) earning a high score on your midterm.

Question

Janiyah

Business

18 October, 01:47

Saturday afternoon you can either attend a street festival, work and earn $100, or study for your midterm exam. You flip a coin between the street festival and studying, but did not really consider working. The coin flip determined that you would stay home and study. The opportunity cost of the time spent studying includes: Multiple Choice 1) the time you spent deciding upon using a coin flip to determine your Saturday afternoon activity 2) the benefit that could have been received at the street festiv 3) earning a high score on your midterm.

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Answers (1)

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Azaria Baxter · Answer 1

The opportunity cost of the time spent studying includes: 2) the benefit that could have been received at the street festival

Explanation:

The cost of opportunity is the alternative that you sacrifice when you choose an option. It represent the benefits that you misses out on when choosing one alternative over another.

In this case, the cost of opportunity is the benefit that could have been received at the street festival, because that is the option you leave behind.

Earning a high score on your midterm is the product of your decision