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 90 on the statistics exam is ___________ points on the economics exam.

Answer 1

Answer: 17 points

Explanation:

The Opportunity cost in this case is the amount of points that Jose has to forgo for picking one alternative.

If Joe had picked strategy B which would give Jose 90 points on statistics then that means that Jose would not have picked strategy A which gave a 94 in Economics.

Therefore instead of getting a 94, Jose would get a 77. The opportunity cost is therefore;

= 94 - 77

= 17 points