Susan is contemplating a job offer with an advertising agency where she will make $54,000 in her first year of employment. Alternatively, Susan can begin to work in her father's business where she will earn an annual salary of $38,000. If Susan decides to work with her father, the opportunity cost would be:

Question

Quizplus · Accepted Answer

The opportunity cost of choosing to work with her father is the amount she would have earned if she chose to work with the advertising agency instead. Therefore, the opportunity cost in this scenario is $54,000. As a result, Susan should accept the job offer from the advertising agency to maximize her earning potential.

Susan Is Contemplating a Job Offer with an Advertising Agency