Ted quits his $60,000-a-year job to be a stay-at-home dad.What is the opportunity cost of his decision?

Question

Quizplus · Accepted Answer

The opportunity cost of Ted's decision to quit his job and become a stay-at-home dad is at least $60,000 because that is the value of the salary he is giving up. Opportunity cost refers to the value of the next best alternative that must be forgone in order to pursue a certain action. In this case, the next best alternative would be to continue working and earning a salary.

Ted Quits His $60,000-A-Year Job to Be a Stay-At-Home Dad