Ryan Spends an Hour Studying Instead of Going for a Bike

question 146

Multiple Choice

Ryan spends an hour studying instead of going for a bike ride. The opportunity cost to him of studying is:

• A) the improvement in his grades from studying for the hour
• B) the difference between the improvement in his grades from studying minus the enjoyment of a bike ride
• C) the enjoyment and exercise he would have received had he gone for a bike ride
• D) zero, since Ryan chose to study rather than to ride his bike, the value of studying must have been greater than the value of the bike ride

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Definitions:

Marginal Cost

The investment required to manufacture an extra unit of a good or service.

Mineral Water

Water that contains minerals or other dissolved substances that alter its taste or give it therapeutic value, usually obtained from wells or springs.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers.

Marginal Cost

The added cost of producing one additional unit of a product or service.