Question

The opportunity cost to a consumer who smokes cigarettes is the:
a. amount of tax levied on the cigarettes this consumer buys
b. cost of complementary products such as lighters, ashtrays, and cigarette holders
c. costs imposed on others who inhale tobacco smoke
d. products that the consumer could have bought instead of cigarettes

Answer 1

Answer: d. Products the consumer could have bought instead of cigarettes.

Opportunity cost refers to the loss benefits from the choices a person would have made if he or she had not made a particular choice.  

Opportunity cost is also known as alternate cost.

In this question, had the consumer would have spent on other products if he had not bought cigarettes. Hence these products represent the opportunity cost of cigarettes.