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What is opportunity cost? Explain a situation in which two people would have different opportunity costs...

What is opportunity cost? Explain a situation in which two people would have different opportunity costs when engaging in the same action.

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Answer #1

Opportunity cost is the loss of benefit of the next best alternative when the other alternative is chosen. It is an implicit cost.

Attending college has a ln opportunity cost varying for different individuals. Opportunity cost of attending college includes salary that is foregone to pursue college studies, also the money used for admission could have earned interest rate if was saved.

Different individuals have different salary offers and interest that could have earned is different for different banks.

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