Question

You are deciding where to eat dinner tonight. Eating at Soup Plantation costs $15 and it gives you $20 worth of benefit. Eating at Del Taco costs $5 and gives you $7 worth of value. What is the opportunity cost of eating at Soup Plantation

Answer 1

Answer: $7

Step-by-step explanation:

Due to scarcity of resources, economic agents have to make choices and the real cost of the forgone alternative when a choice is made is referred to as the opportunity cost.

Based on the information given, the opportunity cost of eating at Soup Plantation will be the $7 worth of value that will be gotten when one eats at Del Taco.