What is the opportunity cost of going to the beach if Jen spends $1 on an umbrella and $11 on food and drinks instead of going to a movie?
Understand the Problem
The question is asking for the opportunity cost of going to the beach, which involves considering both the money spent and the value of the alternative experience (going to the movie) that was forgone.
Answer
$12
The opportunity cost of going to the beach is $12, which is the money Jen could have spent on going to a movie instead.
Answer for screen readers
The opportunity cost of going to the beach is $12, which is the money Jen could have spent on going to a movie instead.
More Information
Opportunity cost refers to the value of the next best alternative forgone. In this case, Jen chose to spend her money at the beach instead of a movie, making the beach expense her opportunity cost in monetary terms.
Tips
A common mistake is misunderstanding opportunity cost as only a monetary concept, whereas it also includes the value of time and experience, which could differ for each individual.
Sources
- Solved Jen spends her afternoon at the beach, paying $1 to - Chegg - chegg.com
- Jen spends her afternoon at the beach paying 1 to - Course Hero - coursehero.com
- MAcro .docx - 10/10 Jen spends her afternoon at the beach - coursehero.com
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