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WAEC Economics 1994 Question 24

Question 24

Basic Concepts

Mr. Idowu needs a television and a refrigerator. Each cost N500.00, the exact amount he has. If Mr. Idowu buys the television, the refrigerator would be regarded as the

  1. A.marginal cost
  2. B.inferior item
  3. C.opportunity cost
  4. D.supplementary item
  5. E.prime cost
Show the answer and explanation

Answer: C (opportunity cost)

Explanation

The refrigerator is the alternative given up to buy the television, so it is the opportunity cost.