Asked by Mojarai Johnson on May 16, 2024

verifed

Verified

You have driven 850 miles on a vacation and then you notice that you are only 50 miles from an attraction you hadn't known about, but would really like to see. In computing the opportunity cost of visiting this attraction you had not planned to visit, you should include

A) both the cost of driving the first 850 miles and the next 50 miles.
B) the cost of driving the first 850 miles, but not the cost of driving the next 50 miles.
C) the cost of driving the next 50 miles, but not the cost of driving the first 850 miles.
D) neither the cost of driving the first 850 miles nor the cost of driving the next 50 miles.

Opportunity Cost

The bypassing of possible gains from a range of alternatives by committing to one choice.

Attraction

The act or capability of drawing interest or desire, often used in reference to magnetic, physical, or emotional appeal between individuals or objects.

Driving Miles

A measure of distance traveled by vehicles, often used to assess fuel consumption or travel costs.

  • Diagnose and evaluate the opportunity cost concerning numerous choices.
  • Understand the principles of cost-benefit analysis and its application in everyday choices.
verifed

Verified Answer

AR
Alexa RolonMay 22, 2024
Final Answer :
C
Explanation :
The opportunity cost of visiting the attraction includes only the cost of driving the next 50 miles, as the cost of the first 850 miles is a sunk cost and not relevant to the decision of visiting the new attraction.