Sue is taking an accounting job she was offered that pays $67,000 per year. She also had two other offers, a sales job paying $71,000 per year and a marketing job paying $65,000 per year. What is Sue's opportunity cost of taking the accounting job?

Question

Quizplus · Accepted Answer

The opportunity cost of taking the accounting job is the difference between the highest paying job (sales job at $71,000) and the job Sue actually took (accounting job at $67,000). Therefore, the opportunity cost is $71,000 - $67,000 = $4,000. However, since the question asks for the opportunity cost of taking the accounting job, we need to flip the sign, making the answer -$4,000. The other job offer (marketing job paying $65,000) is not relevant to the opportunity cost calculation as it pays less than the accounting job. Therefore, the best choice is C.

Sue Is Taking an Accounting Job She Was Offered That