Question

Skeeter's Skeeball Castle has seen its business slow down ever since Kerrie's Off-Key Karaoke opened up next door. Since the opening of Kerrie's Off-Key Karaoke, the opportunity cost of playing skeeball at Skeeter's has:________.

a. increased.
b. not changed.
c. decreased
d. fallen to zero.

Answer 1

The correct answer is letter "A": increased.

Step-by-step explanation:

Opportunity cost is the return of the option chosen compared to the forgone choice. Opportunity cost can also be defined as the return of the next best available option aside from the option taken. The more a good or service is consumed, the lower its opportunity cost turns. The fewer the good or service is requested, the higher its opportunity cost.

Thus, because Skeeter's Skeeball Castle business has dwindled, the opportunity cost of playing skeeball at Skeeter's has increased.