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suppose you hae $20 iTunes gift card, which you can buy or download songs or videos. Songs cost 1 dollar and 1 video costs 2. What is the opportunity cost of 1 video?

User Vampiire
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1 Answer

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Final answer:

The opportunity cost of 1 video is 2 songs.

Step-by-step explanation:

The opportunity cost of 1 video is 2 songs. The opportunity cost refers to the value of the next best alternative that must be given up in order to choose a particular option.

In this case, if you choose to download a video, you have to give up the opportunity to download 2 songs. So, the opportunity cost of 1 video is 2 songs.

User Jim Flanagan
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