select the correct text in the passage.\nwhat is the opportunity cost in this scenario?\nmikael has saved…

select the correct text in the passage.\nwhat is the opportunity cost in this scenario?\nmikael has saved $4,000 for his trip to brazil. he has calculated that his total transportation expenses will be $1,000. the hotel will cost him another $1,500. he will spend about $500 on food. he plans on spending the remaining $1,000 for sightseeing and buying souvenirs.\nwhile booking his plane ticket, he realizes that the price has gone up. his total transportation expenses will go up by $200. he realizes that he cannot cancel his hotel reservation. he also doesnt want to go cheap on food. finally, he decides to give up visiting the popular ouro preto during his stay in brazil.

select the correct text in the passage.\nwhat is the opportunity cost in this scenario?\nmikael has saved $4,000 for his trip to brazil. he has calculated that his total transportation expenses will be $1,000. the hotel will cost him another $1,500. he will spend about $500 on food. he plans on spending the remaining $1,000 for sightseeing and buying souvenirs.\nwhile booking his plane ticket, he realizes that the price has gone up. his total transportation expenses will go up by $200. he realizes that he cannot cancel his hotel reservation. he also doesnt want to go cheap on food. finally, he decides to give up visiting the popular ouro preto during his stay in brazil.

Answer

Explanation:

Step1: Define opportunity cost

Opportunity cost is the value of the next - best alternative forgone.

Step2: Identify alternatives

Mikael has to make a decision due to increased transportation costs. He doesn't cancel food or hotel (as per his choice), and he gives up visiting Ouro Preto.

Answer:

Visiting the popular Ouro Preto