Jane just graduated from college with a Bachelor of Science Degree in Computer Information Systems. She received the following job offers. Jones and Associates at a starting salary of $30,000. Smith Brothers at a starting salary of $33,000. Joan Cannery Consulting at a starting salary of $35,000. Consultants -R -We at a starting salary of $32,000. Andrews Computer Vendors at a starting salary of $36,000. If she takes the job with Andrews Computer Vendors, her opportunity cost is
A) $30,000.
B) $32,000.
C) $33,000.
D) $35,000.
E) nothing because she took the job with the highest salary.

Question

Quizplus · Accepted Answer

Opportunity cost refers to the value of the next best alternative foregone as a result of making a decision. In this case, the next best alternative to the job Jane accepted (Andrews Computer Vendors at $36,000) is the job offer from Joan Cannery Consulting at $35,000, making the opportunity cost $35,000.

Jane Just Graduated from College with a Bachelor of Science