Kathy has the following information to evaluate-her current salary of $53,000 versus total revenues of $82,000 and expenses of $69,000 from starting a new business.How much is the opportunity cost associated with staying at her current job?

Question

Quizplus · Accepted Answer

The opportunity cost is the difference between the profit from the new business ($82,000 - $69,000 = $13,000) and her current salary ($53,000). Thus, the opportunity cost of staying at her current job is $13,000.

Kathy Has the Following Information to Evaluate-Her Current Salary of $53,000