Kevin has $20 to spend on summer clothes. he is looking at shirts, shorts, and flip-flops. shirts are $10, shorts are $15, and flip-flops are $10. he buys one shirt because he thinks that buying the shirt is worth the opportunity cost of the shorts and the flip-flops. which statement best evaluates his reasoning?
kevin has analyzed the situation well. he purchased a shirt and that purchase cost the opportunity of buying the shorts or flip flops.
kevin was wrong in his analysis. he has confused opportunity costs with trade-offs by thinking of both of the lost items as opportunity costs.
kevin was wrong in his analysis. the opportunity cost consists of more than the shorts and flip-flops. it also includes other choices he could have made with the $10.
kevin has analyzed the situation well. however, he should also consider the fact that he saved $10 by only purchasing the shirt.
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Kevin has $20 to spend on summer clothes. he is looking at shirts, shorts, and flip-flops. shirts ar...
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