Chapter 1, Problem 3MCQ

To determine

The question requires us to determine the opportunity cost of reading.

Explanation of Solution

The opportunity cost of reading book is its next best alternative watching videos while the opportunity cost of watching videos is its next best alternative that is, listening to music.

The opportunity cost considers only the next best alternative option, which in this case is watching videos or option ‘b’.

Economics Concept Introduction

Opportunity cost is the next best alternative option that a person chooses. It is result of choosing one best option while forgoing next best alternative option.