Opportunity Cost Answers
Definition: Opportunity cost is the real cost of an item, including what must be given up to obtain it.
Example: Going straight into the workforce after high school makes a college education your opportunity cost, or what you gave up.
1. The cake that Lizzie gave up to have the cookies.
2. The lesson taught during that you missed to be at the concert.
3. False. There are no monetary opportunity costs; only goods or services can be considered “given up.”
Definition: Opportunity cost is the real cost of an item, including what must be given up to obtain it.
Example: Going straight into the workforce after high school makes a college education your opportunity cost, or what you gave up.
1. The cake that Lizzie gave up to have the cookies.
2. The lesson taught during that you missed to be at the concert.
3. False. There are no monetary opportunity costs; only goods or services can be considered “given up.”