The opportunity cost of going to Florida. Concept Introduction: The value of the best alternative forgone when one chooses an item or activity is known as opportunity cost. It also means the loss incurred by choosing one particular item or activity. The opportunity cost of any item should be lower to gain the maximum utility from selecting that item. However, the opportunity cost is subjective means it could mean different for different individuals. Since the hours in a day or the days in a week are fixed, one can only alternate their options to lower their opportunity cost. The opportunity cost also changes based on different circumstances.

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Chapter 2, Problem 1.2P

To determine

The opportunity cost of going to Florida.

Concept Introduction:

The value of the best alternative forgone when one chooses an item or activity is known as opportunity cost. It also means the loss incurred by choosing one particular item or activity. The opportunity cost of any item should be lower to gain the maximum utility from selecting that item. However, the opportunity cost is subjective means it could mean different for different individuals. Since the hours in a day or the days in a week are fixed, one can only alternate their options to lower their opportunity cost. The opportunity cost also changes based on different circumstances.

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