Scenario 13-3
Gary is a senior majoring in computer network development at Smart State University. While he has been attending college, Gary started a computer consulting business to help senior citizens set up their network connections and teach them how to use e-mail. Gary charges $25 per hour for his consulting services. Gary also works 5 hours a week for the Economics Department to maintain that department's Web page. The Economics Department pays Gary $20 per hour.
-Refer to Scenario 13-3.If Gary can work additional hours at either job,what is the opportunity cost if Gary spends one hour reading a novel?

Question

Quizplus · Accepted Answer

The opportunity cost of reading a novel is the potential income Gary could have earned by working. Since he could work additional hours at either job, the cost is the amount he would have earned per hour. Therefore, the opportunity cost is $25 per hour for his consulting business, the job where he earns more per hour. Therefore, B is the correct answer.

Scenario 13-3 Gary Is a Senior Majoring in Computer Network Development at Development