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A college student is faced with a difficult decision of how to spend one hour tonight. She could babysit her professor's child at an hourly wage of $7; she could work at the college library at a wage of $6; or she could finish her economics homework assignment. If she chooses to complete her homework assignment, she has incurred an opportunity cost equal to:

Respuesta :

Answer:

The opportunity cost is equal to $7.

Explanation:

The opportunity cost of a decision is the cost of the second-best alternative sacrificed to take up the decision.  

Here, the student could babysit her professor's child at an hourly wage of $7 or she could work at the college library at a wage of $6 instead of finishing her homework.  

If she chooses to complete her homework assignment, the second-best alternative is babysitting. So she is incurring the opportunity cost of $7.  

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