Suhani works at a call center where she can choose her hours, earning $12 per hour worked. Suhani is planning to spend three hours working on Friday, but a friend calls and invites her to go bungee jumping instead. If Suhani decides to go bungee jumping instead of working, we know that her opportunity cost of working for three hours is:

Question

Quizplus · Accepted Answer

The opportunity cost of working for three hours is the amount of money Suhani would have earned if she had worked instead of going bungee jumping. Since Suhani earns $12 per hour worked, the opportunity cost of working for three hours is $12 x 3 = $36.

Suhani Works at a Call Center Where She Can Choose