Suppose a famous baseball player, Alex Rodriguez, hires a high school student to paint his house. Which of the following is most likely TRUE?
A) The opportunity cost of painting a house is higher for Alex Rodriguez than for the high school student.
B) The opportunity cost of painting a house is lower for Alex Rodriguez than for the high school student.
C) The opportunity cost of painting a house is the same for Alex Rodriguez as for the high school student.
D) The opportunity cost of painting a house is zero for Alex Rodriguez and is negative for the high school student.

Question

Quizplus · Accepted Answer

The opportunity cost of painting a house is the cost of the next best alternative foregone. Alex Rodriguez, being a famous baseball player, could earn a lot more money by playing baseball or doing other activities related to his profession. Therefore, for him, the opportunity cost of painting his house is higher compared to a high school student who may not have such lucrative alternatives available.

Suppose a Famous Baseball Player, Alex Rodriguez, Hires a High