Question

Briefly describe the​ trade-offs involved in the following decision.​ Specifically, what are the opportunity costs associated with the​ decision? Pay particular attention to the​trade-offs between present and future consumption. Frank is overweight and decides to work out every day and to go on a diet.Frank is overweight and decides to work out every day and to go on a diet.A.His opportunity cost is the alternative uses of time spent exercising.His opportunity cost is the alternative uses of time spent exercising.B.His opportunity cost is the forgone satisfaction of consuming foods that are not part of his diet plan.His opportunity cost is the forgone satisfaction of consuming foods that are not part of his diet plan.C.Assuming exercise is not leisure comma he trades consumption of current leisure for future health.Assuming exercise is not leisure, he trades consumption of current leisure for future health.D.All of the above.

Answer 1

Answer:

D. All of the above.

Explanation:

In economics, opportunity cost is the alternative forgone. For example, if two goods X and Y with prices $2 and $3 respectively are compared and an individual chooses to buy X instead of Y, the opportunity cost is the good Y itself that is forgone and not $3 which the price of Y.

Opportunity cost can also be seen as benefits an individual forgo in order to choose an alternative over another.

Therefore, individual pair comparison of each of the following statements opportunity cost to Frank's decision to reduce his weight:

A. His opportunity cost is the alternative uses of time spent exercising.

B. His opportunity cost is the forgone satisfaction of consuming foods that are not part of his diet plan.

C. Assuming exercise is not leisure comma he trades consumption of current leisure for future health.

I wish you the best.