If you can make $20,000 a year teaching, $25,000 a year typing, $30,000 a year driving a cab, and $40,000 a year as a chef, what is the opportunity cost of accepting employment as a chef?

Question

Quizplus · Accepted Answer

The opportunity cost is the value of the next best alternative foregone. In this case, it is the $30,000 you would earn driving a cab, as it is the highest salary you would give up by choosing to be a chef.

If You Can Make $20,000 a Year Teaching, $25,000 a Year