Sue is considering leaving her current position to open a coffee shop.Sue's current annual salary is $83,000.Annual coffee shop revenue and costs are estimated at $260,000 and $210,000,respectively.What is Sue's opportunity cost of staying at her current work position?
A) $50,000
B) $83,000
C) $210,000
D) $343,000

Question

Quizplus · Accepted Answer

Sue's opportunity cost of staying at her current job is the profit she foregoes by not opening the coffee shop, which is the difference between the coffee shop's revenue and costs: $260,000 - $210,000 = $50,000.

Sue Is Considering Leaving Her Current Position to Open a Coffee