Kylakyla is buying clothesclothes. she can choose between blue jeansblue jeans, khaki pantskhaki pants, and black jeansblack jeans. she doesn't like black jeansblack jeans, and after some thought, she chooses blue jeansblue jeans. what is the opportunity cost of this choice?
a. the black jeansblack jeans.
b. the khaki pantskhaki pants.
c. the blue jeansblue jeans, the khaki pantskhaki pants, and the black jeansblack jeans.
d. the khaki pantskhaki pants and the black jeansblack jeans.

B. The khaki pants

Explanation:

Opportunity cost is the benefits forfeited as a result of choosing one item or activity over the other.  It the value of the next best alternative of choice made.

Opportunity costs arise because people have to make choices every day. Choosing an item over others implies sacrificing the benefits of the others. The value or cost of the sacrificed item represents the opportunity cost.

Khaki pants are the opportunity cost. Kyla is comfortable with either blue jeans or khaki pants. He does not like black jeans. His alternatives are khaki pants or Blue jeans. Choosing blue jeans implies forfeiting khaki pants. The khaki pants are the best alternative that was missed.

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