Question

You can either spend $100 on a pair of jeans or a pair of shoes. If you choose to buy the new pair of shoes, the opportunity cost is

the pair of shoes
impossible to determine
the new pair of jeans
both the $100 and the pair of jeans

Answer 1

Well for this one we can get rid of C and D right?
Because if you `spend $100 on a pair of jeans or a pair of shoes,` Then you can't have the jeans and the $100 which eliminates D.
You also can't have the jeans because you chose the shoes.

Answer 2

This leaves us with A and B.
If you spent the money on shoes what would you think the answer would be?

Answer 3

no no no

Answer 4

\(\color{#0cbb34}{\text{Originally Posted by}}\) @AZ
no no no
\(\color{#0cbb34}{\text{End of Quote}}\)
Sorry?

Answer 5

So the definition of opportunity cost is
"the loss of potential gain from other alternatives when one alternative is chosen."

Answer 6

\(\color{#0cbb34}{\text{Originally Posted by}}\) @AZ
So the definition of opportunity cost is
"the loss of potential gain from other alternatives when one alternative is chosen."
\(\color{#0cbb34}{\text{End of Quote}}\)
Ohhhhh, so basically the exact opposite of what I said-

Answer 7

My bad-

Answer 8

So let's say, I have two hours of free time. I can either read a book for 2 hours or watch a 2 hour movie.

If I choose to read the book, the opportunity cost is that I missed out on watching that movie.

And vice versa. If I choose to watch that movie, I've missed out on reading the book. The opportunity cost of watching that movie was reading the book.

Answer 9

So with this new knowledge, @Allison what's the opportunity cost of buying the new pair of shoes?

Answer 10

No idea..

Answer 11

C?

Answer 12

yeah

Answer 13

The opportunity cost is basically what you could have done if you didn't do something else

I have $100, I can spend it on candy or I can donate it to a honorable cause.
I choose to donate it.
What was the opportunity cost? It's all that candy I missed out on because I donated it.