Troy wins a prize of a McDonald's Restaurant $10 gift certificate. He can trade the prize in for a mystery envelope. He gave up the $10 gift certificate to open the mystery envelope that contained a $7 McDonald's Restaurant gift certificate. Which statement is true?

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter2: Economics: Eight Powerful Ideas
Section: Chapter Questions
Problem 11P
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Troy wins a prize of a McDonald's Restaurant $10
gift certificate. He can trade the prize in for a
mystery envelope. He gave up the $10 gift
certificate to open the mystery envelope that
contained a $7 McDonald's Restaurant gift
certificate. Which statement is true?
a. The opportunity cost of choosing the mystery
envelope is $17.
b. The opportunity cost of choosing the mystery
envelope is $3.
c. None of the supplied solutions are correct.
d. There is no opportunity cost with choosing the
mystery envelope.
e. The opportunity cost of choosing the mystery
envelope is $10.
Transcribed Image Text:Troy wins a prize of a McDonald's Restaurant $10 gift certificate. He can trade the prize in for a mystery envelope. He gave up the $10 gift certificate to open the mystery envelope that contained a $7 McDonald's Restaurant gift certificate. Which statement is true? a. The opportunity cost of choosing the mystery envelope is $17. b. The opportunity cost of choosing the mystery envelope is $3. c. None of the supplied solutions are correct. d. There is no opportunity cost with choosing the mystery envelope. e. The opportunity cost of choosing the mystery envelope is $10.
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