Answer:
Option (b) is correct.
Explanation:
The opportunity cost refers to the benefit that is obtained from the next best alternative is sacrificed by choosing some other alternative.
For example:
Suppose a person wants to go in a concert for 2 hours and the ticket price of the concert is $50 and there is a cost of $20 incurred while driving to attend the concert.
He would have been earn wages of $20 per hour.
Therefore, the opportunity cost of attending a concert is as follows:
= Wages given up + Ticket price + Travelling costs
= ($20 per hour × 2 hours) + $50 + $20
= $40 + $50 + $20
= $110
Above amount is given up to attend concert.
