Question

What is the opportunity cost in this scenario? Harry has been very busy at work for the past two weeks. He has been working weekends too. Finally, he is going to get a weekend off. Originally, he planned to paint his apartment that weekend. He also considered going fishing for the weekend. But then his parents called and asked him to come for dinner because it has been a while since they have seen each other. Later on, his friend Theo informed him about a surprise birthday party for another friend. Theo plans to reserve a room at a restaurant for the celebration, with the cost to reserve the room split between Theo, Harry, and three other friends. Now Harry is confused about what he should do over the weekend. He decides that, for him, the most important commitments are going over to his parent's house and attending his friend's birthday party. In the end, Harry decides to see his parents.

Answer 1

Everything else besides Harry seeing his parents is the opportunity cost because those things are what he gave up to go see his parents

Answer 2

the Opportunity Cost is Harry's commitment of going over his parent's house

Explanation:

Opportunity cost arises here due to Harry's busy schedule and his need to choose between many desirables.

But the most preferred and desirable thing for Harry to do at the weekend is to see his parents so he choose to go to his parent's house over all other plans which are made before.