Answer to Question #203790 in Microeconomics for ddddd

Question

f your opportunity cost of a bottle of wine is $37, which of the following prices would you have to observe in the market in order to sell a bottle of wine?

A. $37.01

B. you would sell a sweater at any of these prices.

C. $37

D. $100

E. $50

Answer 1

Solution:

The correct answer is B. you would sell a sweater at any of these prices.

Opportunity cost refers to the loss of a potential gain from other choices when one option is selected. It is the potential loss owing to a missed opportunity. Since all the prices are $37 and above, then you can sell a sweater at any of these prices.