Abubakar has the choice of buying either a house ruining cost. If he
decides to buy the Mercedes Benz car, his opportunity cost is?
Answer Details
Opportunity cost is the cost of the next best alternative foregone, when a choice is made. In this case, Abubakar has the option to either buy a house or a Mercedes Benz car. If he chooses to buy the car, his opportunity cost is the value of the house that he could have bought with the money spent on the car. Therefore, the correct answer is "the house".