Question

An example of opportunity cost:

a. Is sweets given up by a person who would never eat them even if he or she could.
b. Is the chinese food that you gave up when you chose to eat italian food.
c. Is the amount spent on buying movie tickets.
d. For a professor of economics is the pleasure that he or she derives from teaching economics.
e. Is the tuition that you pay to attend college.

Answer 1

Answer: b. Is the Chinese food that you gave up when you chose to eat Italian food.

Step-by-step explanation: Opportunity cost refers to the cost of the next best alternative foregone or sacrificed. When an individual chooses to take a certain action, then his opportunity cost of doing that will be the alternatives that he has foregone.

IT can be expresses as,

`Opportunity cost = (Units sacrificed)/(Units Gained)`

When the individual chooses Chinese food when he could have choose to eat Italian food, his opportunity cost will be the Chinese food that you gave up.

For other options there is no information on what was given up.