An electrician quits her current job, which pays $40,000 per year. She can take a job with another firm for $45,000 per year or work for herself. The opportunity cost of working for herself is
A) $40,000.
B) $45,000.
C) $85,000.
D) $5,000.

Question

Quizplus · Accepted Answer

The opportunity cost of working for herself is the next best alternative forgone, which is the job offering $45,000 per year.

An Electrician Quits Her Current Job, Which Pays $40,000 Per