You can either spend $100 on a new economics textbook or a new CD player. If you choose to buy the new?

Question

economics textbook, the opportunity cost is:

A) $100

B) the new CD player

C) Both the $100 and the new CD player

D) Impossible to determine

Answer 1

A) $100

Answer 2

The New CD player

Opportunity cost implies the choice between desirable, yet mutually exclusive results. It has been described as expressing "the basic relationship between scarcity and choice.". The notion of opportunity cost plays a crucial part in ensuring that scarce resources are used efficiently.Thus, opportunity costs are not restricted to monetary or financial costs: the real cost of output forgone, lost time, pleasure or any other benefit that provides utility should also be considered.

Answer 3

D