Question 3
Basic ConceptsA school girl who needs a book and mirror, each costing five naira, decides to purchase the book instead of the mirror since she cannot pay for the two at the same time. Determine the real cost of her book.
- A.The five naira she spent on the book
- B.Five naira real cash value
- C.The mirror
- D.The book
Show the answer and explanation
Answer: C (The mirror)
Explanation
The real (opportunity) cost of the book is the next best alternative she gave up, which is the mirror.