LET’S TRY ONE
Ari can choose a book or a puzzle and prefers those options in that order. Ari chooses the book. What is given up?
the puzzle
The puzzle is the next-best available alternative.
Learning steps & teaching tips
Identify the next-best option given up when a choice is made.
- Opportunity cost is the best alternative forgone, not every possible alternative.
- Work through the example. Explain how its evidence supports the answer.
- Try a new question; use the explanation to check your thinking.
Try it together
Make one new example with a partner. Identify the evidence for your answer before checking it together.
Opportunity cost is the best alternative forgone, not every possible alternative.