Maria goes on a shopping trip to get ready for her vacation. She loads her cart with a bathing suit for $15.00, a sun hat for $8.00, magazines for $8.00, and a beach towel for $7.00. When she gets to the register, she realizes she only has $20.00 in her pocket.
Question
Use the passage to answer the question.
If Maria decides to purchase the sun hat and towel, what is the opportunity cost of her purchase? Select all that apply.
A: The sun hat
B: The towel
C: the magazines
D: The bathing suit
The opportunity cost refers to the next best alternative foregone when making a decision. In this case, if Maria decides to purchase the sun hat and towel, the opportunity cost would be the items she did not purchase. Therefore, the opportunity cost of her purchase would be:
A: The sun hat (because if she purchases the sun hat, she is forgoing the opportunity to purchase the magazines and bathing suit)
B: The towel (because if she purchases the towel, she is forgoing the opportunity to purchase the magazines and bathing suit)
So, the correct answers are A: The sun hat and B: The towel.