Assume that a consumer has a given budget or income of $10 and that she can buy only two goods, apples or bananas. The price of an apple is $1.00 and the price of a banana is $0.50. For this consumer, the opportunity cost of buying one more apple is

A) 0.5 of a banana.
B) 0.1 of a banana.
C) 1 banana.
D) 2 bananas.

Opportunity Cost

The cost of foregone alternatives, or what is given up in order to pursue a certain action or decision.

Budget

An estimate of income and expenditure for a set period, often used by governments, businesses, and individuals to plan financial operations.

Bananas

A staple fruit globally known for its yellow peel and soft, sweet flesh, often grown in tropical regions.