Bill Bonecrusher graduates from college with a choice of playing professional football at $2 million a year or coaching for $50,000 a year. He decides to play football, but eight years later he quits football to make movies for $3 million a year. His opportunity cost at graduation was ________ and eight years later was ________.
A) $50,000; $2 million
B) $2 million; $2 million
C) $2 million; $3 million
D) $50,000; $50,000

Question

Quizplus · Accepted Answer

At graduation, the opportunity cost of choosing to play football over coaching was the $50,000 he would have earned coaching. Eight years later, when he chose to make movies, the opportunity cost was the $2 million he would have earned from playing football.

Bill Bonecrusher Graduates from College with a Choice of Playing