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28 February, 18:07

Lisa was choosing between three alternatives: working on her job that pays her $60; writing a term paper which she values at $40; or going out with a friend, which she values at $80. The opportunity cost of going out with her friend is

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  1. 28 February, 18:29
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    Opportunity cost is the amount of value that we need to forfeit/sacrifice in order to choose a certain decision.

    In this case, the opportunit cost of choosing to go with friends would be:

    ($40 + $60) - $80

    = $ 100 - $ 80

    = $20
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