MCQ opportunity cost

clarab123

Hi, I was wondering would anyone be able to answer this question for me as I am slightly confused. But I think the answer is A.

You have the choice of going to New York for a week, staying at work for the week, or spending the week skiing in Switzerland. If you decide to go to New York the opportunity cost is:
A) the value of working and skiing;
the value of work or skiing, depending on which you would have done rather than go to New York;
C) working, because you would have given up a week's pay;

Please help

noodler

clarab123 wrote: »

Hi, I was wondering would anyone be able to answer this question for me as I am slightly confused. But I think the answer is A.

You have the choice of going to New York for a week, staying at work for the week, or spending the week skiing in Switzerland. If you decide to go to New York the opportunity cost is:
A) the value of working and skiing;
the value of work or skiing, depending on which you would have done rather than go to New York;
C) working, because you would have given up a week's pay;

Please help

In microeconomic theory, the opportunity cost of a choice is the value of the best alternative forgone



http://en.wikipedia.org/wiki/Opportunity_cost

So .


OC isn't just financial value. You may have lost wages by choosing Skiing or New York but you would also have lost out on a holiday.

It depends which you value more.

Mr. G

yeah as noodler said, it is definately B. It's not just financial value, as a holiday may be worth more to you that lost wages.