Ramona decides to spend two hours taking a nap rather than attending her class. her opportunity cost of napping is __________. the value of the knowledge she would have received had she attended class the value of her nap minus the value of attending class the $24 she could have earned if she had worked at her job for those two hours nothing, since she valued sleep more than attendance at class.

Question

01-09-2018
Business

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Ramona decides to spend two hours taking a nap rather than attending her class. her opportunity cost of napping is __________. the value of the knowledge she would have received had she attended class the value of her nap minus the value of attending class the $24 she could have earned if she had worked at her job for those two hours nothing, since she valued sleep more than attendance at class.

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Rupicapra Rupicapra · Answer 1 · 2018-09-10T10:10:03+02:00

Answer: The value of knowledge she would have received had she attended class.

Opportunity cost refers to benefits that a person foregoes by taking a particular decision. Other names for opportunity cost are alternate cost and implicit cost.

In this case, Ramona’s alternative to sleeping was to attend class. Hence, her opportunity cost is the value of the knowledge she would have received had she attended class.