JAMB - Economics (2009 - No. 1)
Musa has a choice of buying a shirt, a book and a bag. What is the opportunity cost of buying a book?
A bag only
A book and a bag
A shirit and a bag
A shirit only
Explicació
The opportunity cost is simply explained as the foregone alternative. It is what you give up in order to buy something else.
In this case, Musa can either buy a shirt, a book, or a bag, but cannot buy all of them at the same time. If he decides to buy a book, the bag and shirt that he did not buy are the opportunity cost.