Question

You have to decide between going on a cruise with friends and going on a service trip with Alternative Spring Break. You could also work over the break and earn some extra money, but this would be less valuable to you than either experience. If you choose the cruise, what is your opportunity cost?

Choose one:
A. All of the above
B. The money you could make working over spring break
C. The dollar amount of the cruise
D. Alternative Spring Break

Answer 1

Alternative Spring Break

Step-by-step explanation:

Opportunity Cost

Opportunity cost is described as the next best alternative to an action chosen. And it can be described as that cost an individual incurs for foregoing the potential benefits that could be enjoyed if the alternative to a choice is taken. The opportunity cost is the cost of choosing one activity over another activity that is also as good.

In the case of going on the cruise, the opportunity cost is the entire package the Alternative Spring Break brings. Since, it has been decided that the cruise will be embarked upon the entire Alternative Spring Break from the experience to the work and potential earnings represent the opportunity cost.