You have an hour between your economics and math classes. What is the opportunity cost of that time if you use it to complete your math homework instead of your economics homework?
the economics homework you could have completed
the math homework you chose to complete
the cost of your calculator and math textbook
zero, because it doesn't cost any money to do your math homework
I say # 1
- the economics homework you could have completed.
The opportunity cost of a decision is the value of the next best alternative that is forgone. In this case, the opportunity cost would be the economics homework that you could have completed during that hour.
To calculate the opportunity cost, you need to consider the value or importance of both options. Assess the time it would take you to complete the economics homework and the potential benefits or consequences of not completing it.
If you decide to use the hour to complete your math homework instead, the opportunity cost would be the economics homework that you could have finished during that time. You are giving up the opportunity to complete that assignment and potentially earn a high grade or gain a better understanding of the material.
So, the answer is option #1: the economics homework you could have completed. This choice considers the time and effort you would have invested in the economics homework and the potential benefits you could have gained from completing it.