Jack currently works for a law firm full time and earns $60,000 a year.He is thinking of quitting his job to pursue a medical degree.Medical school will cost him $100,000 per year.If Jack quits his job and goes to medical school,the salary he currently earns would be considered what type of cost?

Question

Quizplus · Accepted Answer

The salary Jack currently earns is the opportunity cost of going to medical school. It represents the value of the alternative opportunity (working at the law firm) that he gives up in order to pursue a medical degree.

Jack Currently Works for a Law Firm Full Time and Earns