Question

Suppose that the alternative uses of an hour of your time in the evening, ranked from best to worst, are (i) study economics, (ii) watch two half-hour TV sitcoms, (iii) play pool, and (iv) jog around town. You can only choose one activity. What is the opportunity cost of studying economics for one hour, given this information?Jogging around town.Watching two half-hour TV sitcoms.Playing pool.The sum of watching two half-hour TV sitcoms, playing pool, and doing your laundry.

Answer 1

Watching two half-hour TV sitcoms

Step-by-step explanation:

Opportunity cost is the cost of best opportunity foregone while choosing the current opportunity.

As for studying economics the next best activity could be watching 2 TV sitcoms each of half hour making a total of 1 hour. That is equivalent to time taken for studying economics.

As all opportunities are laid in the next best manner, thus, the cost of study economics is the opportunity foregone of watching TV.