Question

Jose has one evening in which to prepare for two exams and can employ one of two possible strategies:
Strategy: Score in Economics Score in Statistics
A 94 79
B 77 90
The opportunity cost of receiving a 94 on the economics exam is __________ points on the statistics exam.
a. 79
b. 17
c. 11
d. 90

Answer 1

Answer:

a. 79

Explanation:

Opportunity cost can simply be defined as the alternative forgone. That is, opportunity cost is that good, commodity or service or whatsoever is sacrificed in order to obtain another. In economics, it is known as real cost. Thus in the question above, Jose employes strategy A such that when he prepares for two exams in one evening, the opportunity cost of receiving a 94 point on Economics exam is 79 points on the statistics.