Scenario 13-2
Kachina is a senior majoring in graphic design at Awesome University (AU). While she has been attending college, Kachina started a computer consulting business to help senior citizens learn how to use their iPads. Kachina charges $25 per hour for her consulting services. She also works 5 hours a week for the Economics Department to maintain that department's Web page. The Economics Department pays Kachina $20 per hour.
-Refer to Scenario 13-2. If Kachina can work additional hours at either job, what is the opportunity cost if she spends one hour reading a novel?
A)$20
B)$25
C)$100
D)$125

Question

Quizplus · Accepted Answer

The opportunity cost of reading a novel for one hour is the value of the highest-paying alternative forgone, which is her consulting business at $25 per hour.

Scenario 13-2 Kachina Is a Senior Majoring in Graphic Design at Awesome