Question

The night before a midterm exam, you decide to go to the movies instead of studying for the exam. You score 60 percent on your exam. If you had studied the night before, you'd have scored 70 percent. What was the opportunity cost of your evening at the movies?

Answer 1

The opportunity cost of going to the movies instead of studying for an exam is the 10 percent higher score that could have been obtained on the exam. Opportunity cost represents the benefits of the next best alternative forgone when making a decision.

Step-by-step explanation:

The opportunity cost of your evening at the movies, in this case, is the difference in the exam score you achieved by not studying versus what you could have achieved if you had studied. This is measured by the 10 percent higher score you could have received on your exam. So the opportunity cost is the lost opportunity to score 70 percent instead of 60 percent, representing the foregone benefit of better exam performance in favor of leisure time at the movies.

A fundamental principle of economics is that every choice has an opportunity cost. This concept means that for every decision made, there is a next-best alternative that is not chosen. In your decision to go to the movies instead of studying, your opportunity cost is the additional 10 percent score you gave up, which could have potentially led to better academic outcomes or even a better final grade in the course.

Answer 2

10% of exam score

Step-by-step explanation:

Opportunity Cost is the cost of next best alternative, foregone (sacrifised) while making a choice.

Example : If a person has option to have an apple or an orange, & choses to have apple. The opportunity cost of having an apple is the sacrifised orange.

Given : A night before mid time exam, spent while watching movies - later lead to fall in exam grade from 70 % to 60%

The opportunity cost of movies watched, is the sacrifised grade of exam, which would have gotten, if the time would have spent in studying. The corresponding grade lost = 70% grade achievable - 60% grade achieved. Hence, the opportunity cost = 10% of exam score.