Bill gives up his present job in Delaware to pursue a graduate school program in New York. What is the opportunity cost of his decision?

Question

Quizplus · Accepted Answer

The opportunity cost of Bill's decision is the wages that he gives up when he quits his job. This is because opportunity cost refers to the value of the next best alternative that is forgone, and in this case, the next best alternative is Bill's current job in Delaware.

Bill Gives Up His Present Job in Delaware to Pursue