What is the opportunity cost in this scenario?
Harry has been very busy at work for the past two weeks. He has been working weekends too. Finally, he is going to get a weekend off.
Originally, he planned to paint his apartment that weekend. He also considered going fishing for the weekend
But then his parents called and asked him to come for dinner because it has been a while since they have seen each other
Later on, his friend Theo informed him about a surprise birthday party for another friend. Theo plans to reserve a room at a restaurant for the
celebration, with the cost to reserve the room split between Theo, Harry, and three other friends.
Now Harry is confused about what he should do over the weekend. He decides that, for him, the most important commitments are going over to
his parent's house and attending his friend's birthday party. In the end, Harry decides to see his parents.

Respuesta :

An opportunity cost is defined as the loss of a potential gain from going with another alternative. The opportunity costs in this situation are everything that Harry gave up, to see his parents. Although he gained the dinner with his parents that ha hadn't seen in awhile, he gave up a lot of other options on how he spent his weekend.