In choosing tuition money over a car, what is Mary's opportunity cost?

Opportunity cost refers to the value of the next best alternative that is forgone when making a choice. In this scenario, Mary has the option to either invest in tuition or purchase a car. The opportunity cost would be the benefits she would have gained from the choice she did not make—in this case, the car.

Choosing tuition money suggests that Mary has decided the benefits of education outweigh those of having a car. If Mary determined the value of the car is $5,000, then her opportunity cost for choosing tuition money over the car is precisely that amount. This means that while she gains the benefits of education, she is also giving up the immediate utility and potential transportation convenience that the car could provide.

Thus, $5,000 stands as a clear representation of the opportunity cost associated with her decision. This understanding is crucial in economic decision-making, as it highlights the importance of evaluating what is sacrificed in the pursuit of another goal.