Question

You bought two frappe with the last ten dollars in your checking account and your next payday is on Monday. What is the opportunity cost of these drinks?

Answer 1

The opportunity cost of the drinks is $10.

Step-by-step explanation:

Opportunity costs refer to the value of the next best alternative that has been foregone when making a different choice. If the person has not bought the two frappuccinos, then the person would have left with $10 until they get their next paycheck on Monday. Since the question does not specifically mention any other alternative, it can assume that the next best alternative would be to save the money until Monday.

Thus, the person would have saved $10 if he/she did not buy the drinks and therefore the opportunity cost of the drinks is $10.

Answer 2

Based on the given answer choices, the opportunity cost of buying the two frappes with the last ten dollars in your checking account would be the movie with your friends this Saturday night that you would have enjoyed had you not bought the frappuccinos, which is valued at 5 dollars.

Step-by-step explanation: