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JAMB Economics 1985 Question 3

Question 3

Basic Concepts

Bisi needs a book costing N10.00 and a hat costing N10.00. If Bisi buys the book instead of the hat, the opportunity cost of his choice is the

  1. A.cost of the book
  2. B.cost of the hat
  3. C.book
  4. D.hat
  5. E.N10.00.
Show the answer and explanation

Answer: D (hat)

Explanation

Opportunity cost is the next best alternative actually given up. Bisi chose the book, so what he gave up is the hat itself.