Which of these options best reflects Jim's opportunity cost of operating his own business?

Question

Quizplus · Accepted Answer

Opportunity cost refers to the foregone alternative of choosing one option over another. In this case, Jim's opportunity cost of starting his own business would be the value of his managerial skills that he could have used somewhere else if he had chosen not to start his own business. The cost of getting capital equipment or hiring laborers are expenses incurred in running the business and not necessarily opportunity costs.

Which of These Options Best Reflects Jim's Opportunity Cost of Operating