Asked by Jasmine Montero on Jul 15, 2024
Verified
Alana decides to spend 2 hours working overtime rather than going shopping with her friends. She earns $11 per hour for overtime work. Her opportunity cost of working is
A) the $22 she earns working.
B) the $22 minus the enjoyment she would have received from going shopping.
C) the enjoyment she would have received had she gone shopping.
D) nothing, since she would have received less than $22 worth of enjoyment from going shopping.
Opportunity Cost
The price of discounting the second most appealing alternative when engaging in decision-making.
Overtime Work
Overtime work refers to time spent working beyond the normal working hours, typically compensated at a higher pay rate.
Enjoyment
A feeling of pleasure and satisfaction obtained from various life activities or experiences.
- Pinpoint and figure out the opportunity cost linked to different decisions.
- Understand the foundational aspects of cost-benefit analysis and how it is applied in regular choice-making situations.
Verified Answer
JS
James SlaightJul 16, 2024
Final Answer :
C
Explanation :
The opportunity cost of working overtime for Alana is the enjoyment she would have received from going shopping, as it represents the value of the next best alternative foregone by choosing to work instead.
Learning Objectives
- Pinpoint and figure out the opportunity cost linked to different decisions.
- Understand the foundational aspects of cost-benefit analysis and how it is applied in regular choice-making situations.
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