Economics 9708 · AS & A Level · Scarcity, choice and opportunity cost

Scarcity, choice and opportunity cost — practice question

A student purchases a flute for $80 but then cannot learn to play it. Its resale value is $50, whereas the shop retail price of the same type of flute has increased to $95. What is the current opportunity cost to the student of keeping the flute?

  • A$30
  • B$50
  • C$80
  • D$95

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