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Musa has a choice of buying a shirt, a book and a bag. Wh...

Musa has a choice of buying a shirt, a book and a bag. What is the opportunity cost of buying a book?

A.

A bag only

B.

A book and a bag

C.

A shirt and a bag

D.

A shirt only

Correct answer is C

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.