) the price of gasoline is $2.50 per gallon at the closest gas station, but is only $2.30 per gallon at a gas station two miles away. by driving to the farther gas station, the opportunity cost is
By definition, opportunity cost is the cost of the next alternative that you gave up because you choose another one. In this case, there are two alternatives: the closer gas station and the farther gas station. Because you chose the cheaper but farther gas station, then the opportunity cost is $2.50 for the closer gas station.
