Opportunity Cost

A popular bakery has only a few ingredients left to make their products. The bakers decide to make cookies for their customers instead of muffins. What is their opportunity cost?

The Welch family has saved some money. They can spend it on a vacation or build a swimming pool in their back yard. They decide to spend the money on a swimming pool. What is the opportunity cost of their decision?

Emelia has been invited to a sleep over, but she has tickets to a football game the same night. She decides to give the tickets away and go to the sleepover. What is the opportunity cost of her decision?

Max is studying for a test, but his favorite TV program is on. If he studies for the test, he will miss watching the show. Max decides to study for his test instead of watching TV. What is the opportunity cost of his decision?

The local council must decide what to do with the money they have. They could build a new skate park or they could buy more computers for the library. The officials decide to build a skate park. What is the opportunity cost of their decision?

The economic problem is that