The opportunity cost of spending $25 on a concert ticket instead of a
new video game is:
The time you spent researching the new video game.
The $25 you don't have for a new video game.
The $25 you don't have a new video game plus the time you spent
researching games.
The $25 spent on the concert ticket.
The opportunity cost of spending $25 on a concert ticket instead of a new video game is:
- The $25 you don't have for a new video game.
This is the correct answer because opportunity cost refers to the value of the next best alternative foregone. In this scenario, if you choose to spend $25 on a concert ticket, the opportunity cost is the value of what you gave up by not purchasing the new video game, which is the $25 you don't have available to spend on the game due to spending it on the concert ticket. Opportunity cost is about what you are sacrificing by choosing one option over another.
