Let us suppose that if Oprah Winfrey was not a superstar she would have been a judge making $100,000 per year. If she makes $63 million dollars this year, her opportunity cost is

Question

Quizplus · Accepted Answer

The opportunity cost is the value of the next best alternative foregone. In this case, if Oprah did not earn $63 million as a superstar, she would have earned $100,000 as a judge. Therefore, her opportunity cost of being a superstar instead of a judge is $100,000.

Let Us Suppose That If Oprah Winfrey Was Not a Superstar