Maurice receives $100 as a birthday gift. In deciding how to spend the money, he narrows his options down to four choices: Option A, Option B, Option C, and Option D. Each option costs $100. Finally he decides on Option B. The opportunity cost of this decision is __________.
A. the value to Maurice of the option he would have chosen had Option B not been available
B. $300
C. the value to Maurice of Options A, C and D combined
D. $100
a
The opportunity cost refers to the value of the next best alternative that is given up when making a decision. In this case, Maurice had four options to choose from: Option A, Option B, Option C, and Option D. Each option has a cost of $100.
Since Maurice decided on Option B, the opportunity cost is the value of the option he would have chosen if Option B had not been available. To determine the opportunity cost, we need to consider the options he did not choose, which are Option A, Option C, and Option D.
Therefore, the correct answer is C. The opportunity cost of Maurice's decision to choose Option B is the value of Options A, C, and D combined.