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Question
steven has two hours to complete an assignment in economics or to watch a movie. for steven, the opportunity cost of spending the two hours watching a movie
a is a higher score in the economics assignment.
b is zero because he still got a passing grade on the economics assignment.
c depends on how much he enjoys the movie.
d is none because the economic assignment is not related to the movie.
Opportunity cost refers to the value of the next best alternative that is forgone when making a choice. In this case, Steven's next best alternative to watching a movie is completing his economics assignment, which would result in a higher score on that assignment. Options B, C, and D are incorrect because opportunity cost is not zero if a passing grade is earned, does not depend on enjoyment of the chosen option, and exists because the two activities are mutually exclusive uses of his time.
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A. is a higher score in the economics assignment.