Question

Bill Bonecrusher graduates from college w/ choice of playing professional football at $2 mil. a year/coaching for $50,000 a year. He decides to play football, but eight years later he quits football to make movies for $3 mil. a year. His opportunity cost a graduation was _________ and eight years later was ______.

Answer 1

Answer:

His opportunity cost a graduation was$50,000  and eight years later is  $2 million

Explanation:

His opportunity cost at the time of graduation is $50,000 as he has 2 choices at that time, either playing soccer or coaching. And as he has been playing football for eight years which implying that he gave up the coaching option. The opportunity cost was therefore $50,000, which is a yearly amount of coaching.

in the same way his opportunity cost is $2 million  after 8 years because he has two alternatives to play soccer and create films. And as  he gave up the possibility to play football. Therefore, the opportunity cost for playing soccer was $2 million, which is the sum he gets.