Question

Hal currently works as the burger guy at Burger Haven but is thinking of quitting his job to attend college full time next semester. Which of the following would be considered an opportunity cost of attending college? a. The costs of the textbooks. b. The costs of the cola that Hal will consume during class. c. Hal’s lost wages at Burger Haven. d. The cost of commuting to the Burger Haven job.

Answer 1

Answer:

c. Hal’s lost wages at Burger Haven

Explanation:

The opportunity cost is the cost of the best alternaive rejected to perform the current project.

We must calculate the opportunity cost for each factor when needed. The most common example, if someone is using a place for a personnal project, the opportuniy cost will be the sum of:

The rent factor, the proceeds it could receive from the space

The labor factor, the salary it could recieve if it is working on a different project.

In this case, Hal only is resining to labor factor, so the opportunity cost for collegue is the lost wages at burger haven