Mark quit his job as a salesman where he made $43,000 per year to start his own t- shirt making business. His business expenses are $6,000 per year on rent, $12,000 per year on supplies, and $4,000 per year on part- time help. As for his personal expenses, his apartment costs him $4,800 per year and his personal bills are an extra $1,200 per year. Which of the following is not part of the opportunity cost of running his business?

Question

Quizplus · Accepted Answer

The opportunity cost of running his business should only include the expenses that Mark gave up by quitting his job as a salesman. His personal bills and apartment costs are personal expenses that he would have paid regardless of his employment status. Therefore, they are not part of the opportunity cost of running his business.

Mark Quit His Job as a Salesman Where He Made