The opportunity cost of hiring your lazy brother who does nothing all day is zero.

Question

Quizplus · Accepted Answer

The opportunity cost of hiring someone is the value of the next best alternative that you could have hired instead. In this case, the opportunity cost of hiring your lazy brother who does nothing all day is the value of the next best alternative employee that you could have hired instead. This could be someone who is hardworking, productive, and contributes more to the company than your lazy brother, so the opportunity cost is not zero.

The Opportunity Cost of Hiring Your Lazy Brother Who Does