Bonnie is debating whether to take a job as a professional therapist or a florist. She will earn $40,000 a year as a therapist or $30,000 a year as a florist. If she chooses to be a therapist, the opportunity cost is

Question

Quizplus · Accepted Answer

The opportunity cost of choosing one option over another is the value of the opportunity lost. In this case, if Bonnie chooses to be a therapist, she foregoes the opportunity to earn $30,000 as a florist. Therefore, the opportunity cost of choosing to be a therapist over a florist is $30,000.

Bonnie Is Debating Whether to Take a Job as a Professional