According to the information provided, what are Lee's opportunity costs of operating her new business?

Question

Quizplus · Accepted Answer

The opportunity cost of Lee's new business can be calculated as the sum of combined salaries and benefits that Lee and her partner would earn if they continued in their current jobs. This equals $50,000 ($30,000 for Lee and $20,000 for her partner).

Therefore, the best choice would be to only start the new business if it is projected to earn more than $50,000 in profits, otherwise, the opportunity cost would be too high.

According to the Information Provided, What Are Lee's Opportunity Costs