you received $50 as a birthday gift and chose to spend it on new wallpaper for your room. the opportunity…

you received $50 as a birthday gift and chose to spend it on new wallpaper for your room. the opportunity cost of this decision is: a. the price of the wallpaper you bought. b. the other items you could have purchased with your $50. c. the time you could have spent doing other things. d. all of the above

you received $50 as a birthday gift and chose to spend it on new wallpaper for your room. the opportunity cost of this decision is: a. the price of the wallpaper you bought. b. the other items you could have purchased with your $50. c. the time you could have spent doing other things. d. all of the above

Answer

Brief Explanations:

Opportunity cost is the value of the next - best alternative forgone. When spending $50 on wallpaper, the other items that could have been bought with that $50 are forgone. The time spent on shopping for and applying the wallpaper is also an opportunity cost as it could have been spent on other activities. The price of the wallpaper itself is not the opportunity cost.

Answer:

B. The other items you could have purchased with your $50.