Problemas
The Welch family has saved some money.They can spend it on a vacation to the Grand Canyon or build a swimming pool in their back yard. They decide to spend the money on a swimming pool. What is the opportunity cost of their decision? C Swimming Pool Vacation
Roztwór
Facundo
professionell · Tutor durante 6 años
4.7
(390 Votos)
Respuesta
Vacation
Explicación
## Step 1The concept of opportunity cost is a fundamental principle in economics. It refers to the potential benefits that are given up when a particular decision is made. In other words, it is the cost of the next best alternative that is not chosen.## Step 2In this problem, the Welch family has two options: they can either spend their money on a vacation to the Grand Canyon or they can build a swimming pool in their backyard.## Step 3The family decides to spend their money on building a swimming pool. This means they are giving up the opportunity to go on a vacation to the Grand Canyon.## Step 4Therefore, the opportunity cost of their decision to build a swimming pool is the vacation to the Grand Canyon.