Eli can decide between two jobs.One job is harvesting grapes at a local vineyard.He would earn $8 every hour he works there.He could also earn $7 an hour working as a bagger at the local grocery.Assuming Eli can only choose between these 2 jobs and that the benefits of both jobs are the same.If Eli decides to work at the grocery store as a bagger the opportunity cost every hour he decides to work at the grocery is:

Question

Quizplus · Accepted Answer

The opportunity cost is the value of the next best alternative that is given up. In this case, the next best alternative is the job at the vineyard, which pays $8 per hour. Therefore, the opportunity cost of working at the grocery store is $8 per hour.

Eli Can Decide Between Two Jobs