Nivea wants to buy a new backpack. She looks at different choices. One store has a yellow backpack and a large blue one that she likes. Another store has a big, red backpack and a smaller red one. Nivea wants a big backpack and she chooses the bigger blue one. What is the most likely opportunity cost of her decision?
a- the money she spent on the backpack
b- the smaller red backpack
c- the yellow backpack
d- the big, red backpack
My answer is d.
Your answer is incorrect. The most likely opportunity cost of Nivea's decision to choose the bigger blue backpack would be the smaller red backpack (option b). An opportunity cost is the value of the next best alternative that is given up when making a decision. In this case, since Nivea chose the bigger blue backpack, the smaller red backpack is the next best alternative that she gave up.
To determine the most likely opportunity cost of Nivea's decision, we need to understand what opportunity cost means. Opportunity cost refers to the value of the next best alternative that is foregone when making a decision.
In this scenario, Nivea's choice is between a big, blue backpack and other options including a smaller red backpack, a yellow backpack, and a big, red backpack. As she wants a big backpack, the most likely opportunity cost of her decision would be the next best alternative that she could have chosen but did not, which is the big, red backpack (option d).
So, your answer of d, the big, red backpack, is correct!