In 2003, Michael Jordan decided to retire from professional basketball.Which of the following was an opportunity cost of his decision?
A) the lost salary from playing one more year
B) the time he could spend with his family while retired
C) the avoidance of pain and injury from playing one more year
D) the value of new employment opportunities that would await him
E) Both answers A and B are correct.

Question

Quizplus · Accepted Answer

The opportunity cost of Michael Jordan's decision to retire from professional basketball would be the lost salary from playing one more year. Opportunity cost refers to the value of the next best alternative that must be given up in order to pursue a certain action. In this case, the next best alternative for Michael Jordan would be to continue playing basketball and earning a salary for another year.

In 2003, Michael Jordan Decided to Retire from Professional Basketball