Question

What is the opportunity cost in this scenario? Gretchen earned $500 from her summer job. She made a list of things that she wants to do with the money she earned. She thought of spending $100 to buy a guitar amplifier, enrolling in a ballet class for $200, buying new clothes worth $100, and giving her mom a silver necklace worth $100. When she went to buy the amplifier, she found it cost around $150. She knew that she couldn’t change the fee for the dance classes. So she had to adjust the budget for her clothes or her mom’s gift. In the end, she decided she would buy one pair of jeans instead of the two pairs of jeans she had planned. NextReset

Answer 1

well Opportunity cost is the loss of potential gain from other alternatives when one alternative is chosen.

so...

So she had to adjust the budget for her clothes or her mom’s gift. In the end, she decided she would buy one pair of jeans instead of the two pairs of jeans she had planned.

is most likely your answer.

hope this helped have an amazing day.

Answer 2

Based on the fact that she had to adjust the budget to get only a pair of jeans, the opportunity cost would be the pair of jeans she gave up.

What is opportunity cost?

This refers to the benefits that we give up when we pick an alternative over another.

In this case, Gretchen could have had two pairs of jeans but she decided to give one up to buy her mother's gift. She therefore gave up the benefit of having two jeans.

In conclusion, the pair of jeans was the opportunity cost.

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