Tim woke up this morning with a stomachache and decided to skip class in order to get more rest. what is the opportunity cost of tim's decision to sleep in?

a) the improvement in how he feels by getting more rest
b) the actual enjoyment of lying in bed instead of sitting in class
c) the value of attending the class he decided to miss
d) the level of pain he endured from the stomachache

The correct answer is letter "C": the value of attending the class he decided to miss.

Explanation:

Opportunity cost reflects the benefit of the option chosen -out of different variables- compared to the benefit that could have been obtained if another option was taken. It is the return of the option taken in reference to the option forgone. Opportunity cost could be positive or negative.

In Tim's case, as he decides to stay at home because of his stomachache, he will be missing class. Thus, the class missed is Tim's opportunity cost over sleeping in.

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