It is a beautiful afternoon and you are considering taking a leisurely stroll through the park. There are several other activities you had considered doing instead. The value you would have received from each of the activities is provided in the table below.
| Alternative activities | Value |
|---|---|
| Streaming a movie | $5 |
| Taking a nap | $8 |
| Chatting with your best friend | $13 |
| Reading a new book | $15 |
What is the opportunity cost to you of taking the stroll through the park?
Guys, please explain this question!!
The opportunity cost of the activity is the next best option that we have gave up. here , the opportunity cost of strolling in the part will be $15 that is reading a new book, we have gave up reading a new book to stroll in the park.
So, strolling in the park is the activity that we are doing, and if we haven't done that we would have selected the next best option that is reading a new book so we gave up book and that will be the opportunity cost
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