Kendra is trying to decide whether to go to Abby's house to watch a movie or to go to Samuel's house to play board games. They live about the same distance away, and there is no cost for either event. If she chooses to go to Abby's house, what is the opportunity cost?

Question

Kendra is trying to decide whether to go to Abby's house to watch a movie or to go to Samuel's house to play board games. They live about the same distance away, and there is no cost for either event. If she chooses to go to Abby's house, what is the opportunity cost?

a

The net value to Kendra of going to Abby's house to watch a movie.
b

There is no opportunity cost because there is not cost associated with either option. Economics do not apply to this kind of decision.
c

The difference in value to Kendra of the two options.
d

The net value to Kendra of going to Samuel's house to play games.

Answer 1

c - The opportunity cost is the value of the option that Kendra did not choose. In this case, it is the difference in value between going to Abby's house to watch a movie and going to Samuel's house to play board games.

Answer 2

Kendra is trying to decide whether to go to Abby's house to watch a movie or to go to Samuel's house to play board games. They live about the same distance away, and there is no cost for either event. If she chooses to go to Abby's house, what is the opportunity cost?

c - The opportunity cost is the value of the option that Kendra did not choose. In this case, it is the difference in value between going to Abby's house to watch a movie and going to Samuel's house to play board games.

c. The difference in value to Kendra of the two options.