In an added perspective, we learn that Elaine Rodier gave up a job as a nursery school teacher to make appetizers. In doing this, she incurs a(n)
A) implicit cost less than her lost income
B) explicit cost at least equal to her lost income
C) opportunity cost at least equal to her lost income
D) variable cost equal to her lost income
E) marginal cost equal to her lost income

Question

Quizplus · Accepted Answer

Opportunity cost refers to the value of the next best alternative forgone as a result of making a decision. In Elaine Rodier's case, the opportunity cost of giving up her job to make appetizers is at least equal to the income she lost by leaving her job, as this income represents the value of the next best alternative she gave up.

In an Added Perspective, We Learn That Elaine Rodier Gave