Tara, a pharmacist, is planning on opening her own pharmacy. Tara currently earns $50,000 a year at her job. She has calculated that it will cost her $6,000 in rent and utilities and $25,000 for an assistant per year to run her pharmacy. What is the amount of opportunity cost that Tara incurs in running her own pharmacy?

Question

Quizplus · Accepted Answer

The opportunity cost includes Tara's current salary of $50,000, which she foregoes, plus the $31,000 in expenses ($6,000 for rent and utilities and $25,000 for an assistant), totaling $81,000.

Tara, a Pharmacist, Is Planning on Opening Her Own Pharmacy