Asked by Melissa Washburn on May 01, 2024
Verified
Tommy spends most of his monthly budget on $3 video game rentals or $6 packets of Pokemon cards.The opportunity cost to Tommy of an extra packet of Pokemon cards is
A) one video game rental.
B) two video game rentals.
C) the cost of the Pokemon cards.
D) he does not incur an opportunity cost.
Opportunity Cost
The cost of forgoing the next best alternative when making a decision, representing the benefits that could have been gained by choosing the alternative option.
Video Game Rentals
A service that allows consumers to borrow video games for a limited period of time for a fee.
Pokemon Cards
Collectible cards based on the Pokémon franchise, used for playing the Pokémon Trading Card Game.
- Acquire insight into the idea and impact of opportunity cost.
Verified Answer
JH
Jenny HeckmanMay 02, 2024
Final Answer :
B
Explanation :
The opportunity cost of an extra packet of Pokemon cards for Tommy is what he must give up to obtain it. Since a packet of Pokemon cards costs $6 and a video game rental costs $3, Tommy could afford two video game rentals for the price of one packet of Pokemon cards. Therefore, the opportunity cost of an extra packet of Pokemon cards is two video game rentals.
Learning Objectives
- Acquire insight into the idea and impact of opportunity cost.