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Sergei had to decide among watching a two-hour movie with a cost of $20, buying a book to read for $10 that would take about four hours to read, and going to a three-hour concert for $30. If he considers the benefit of each situation to be proportional to the amount of time, with a value of about $50 per hour, what is the opportunity cost of the best decision?
$80
$150
$190
$120

Answer :

B is the correct answer

Answer:

D: $120

Explanation:

A: I just took the test and can view answers

B: Opportunity cost is the overall cost (in this case, financial/time) of an allocation of resources against another. So, we can thus reason, if his time is worth $50 per hour, we can calculate that...

Two hour movie costing $20: 2(50)-20=$80

Three hour concert costing $30: 3(50)-30=$120

Four hour book costing $10: 4(50)-10=$190

So the opportunity cost of the best decision (the cost of the second best option assuming he picks the best option) is $120, answer D

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