Mark is an engineer who has designed a telecommunications device. He is convinced that there is a big potential market for the device. Accordingly, he has decided to quit his present job and start a company to manufacture and market the device.The salary that Mark earns at his present employ is:
A) a variable cost
B) a fixed cost
C) a product cost
D) an opportunity cost

Question

Quizplus · Accepted Answer

Mark's salary at his current job represents an opportunity cost because by quitting his job to start his own company, he is giving up the potential earnings and benefits he could have received from staying in his current job.

Mark Is an Engineer Who Has Designed a Telecommunications Device