Question

Given the option of two activities, an individual chooses a football game over going to a movie. which type of cost is the activity that is sacrificed called?

Answer 1

The activity that is sacrificed called the opportunity cost based on the situation from the question above. The opportunity cost is the benefit which someone would get if he/she choose another option besides his/her first option. Each of the options gives a different benefit to the person, thus, he/she has to sacrifice the other benefit.