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

## Step 1<br />The 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.<br /><br />## Step 2<br />In 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.<br /><br />## Step 3<br />The 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.<br /><br />## Step 4<br />Therefore, the opportunity cost of their decision to build a swimming pool is the vacation to the Grand Canyon.