Answer:
see below
Explanation:
Opportunity cost refers to the forfeited benefits as a result of preferring one option over others. When deciding between several choices, one has to weigh the gains associated with each option.
When a choice is made, one foregoes the benefits from the options not preferred. The friend needs money to buy a car. Naturally, they have several options to spend that money other than buying a car. For example, they can invest in stocks, take a holiday, or buy a house. All the alternatives have their uniques benefits. If they buy a car, they forego the advantages of the other options. Opportunity cost is measured as the benefits of the next best alternative
