If Xavier gives up a job in which he earns $23 000 per year in order to go to college full time, his forgone income is part of the opportunity cost of going to college.

Question

Quizplus · Accepted Answer

Opportunity cost refers to the value of the best alternative forgone when making a decision. In this case, Xavier's forgone income of $23,000 per year is the best alternative he is giving up by going to college full time, and therefore it is part of the opportunity cost of his decision.

If Xavier Gives Up a Job in Which He Earns