For each of the five situations below, identify the opportunity cost of the person's choice. Describe the choice and opportunity cost of each situation. "Use a sentence that begins "When...chose the..., his/her opportunity cost was...".

Question

For each of the five situations below, identify the opportunity cost of the person's choice. Describe the choice and opportunity cost of each situation. "Use a sentence that begins "When...chose the..., his/her opportunity cost was...".

The city was building a new park. There was only enough money in the budget to include new tennis courts, a wading pool, a music stage, or a parking lot. At the public hearing, many of the people wanted more parking. City Council voted to build the music stage after narrowing it down to either the stage or the wading pool. What was the city's opportunity cost?

Answer 1

When the City Council chose to build the music stage, their opportunity cost was not being able to build the wading pool.

Answer 2

When the City Council chose to build the music stage for the new park, their opportunity cost was not being able to include the wading pool in the park.

Answer 3

To determine the city's opportunity cost in this situation, we need to identify the choice they made and the alternative they gave up. So, when the City Council chose to build the music stage instead of the wading pool, their opportunity cost was not having the wading pool. The opportunity cost in this situation refers to the benefits and value the city is sacrificing by not choosing the wading pool option.