Answer to Question #94248 in Economics for Ash

Question

Suppose you decided to study all last week for this exam instead of doing anything fun. What was the opportunity cost of doing so? Why might the opportunity cost (defined in terms of fun lost) be expected to increase?

Answer 1

The opportunity cost of doing so is time for doing anything fun lost.

The opportunity cost (defined in terms of fun lost) is expected to increase, because of the law of increasing opportunity cost, as you reallocate resources to produce one good that was better suited to produce the original good.