Question

Johnson won a free ticket to tour around the world in one year, but he will have to resign from his job. Which of the following is correct if he does cost-benefit analysis? A) The tour provides only benefits B) The only cost will be paying for food C) There is no opportunity cost to be considered D) The cost of the lost income is equal to the benefit of the free ticket E) The result may lead to a sub-optimal choice if opportunity costs are not considered

Answer 1

The result may lead to a sub-optimal choice if opportunity costs are not considered.

Step-by-step explanation:

AP Micro; FLVS

OC include the income that Johnson earn from the job, which he will have to resign for free ticket to tour around the world.

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