Question

Boris currently works as a political consultant, earning $100,000 a year. he has three job offers with the salaries of $110,000, $105,000, and $95,000. if boris accepts the best offer and quits his current job, his opportunity cost will be

Answer 1

Opportunity cost refers to the loss of other alternatives when one alternative is chosen, that is, it is the benefits given up when decision is made to chose another benefit.
In the question given above, the best offer is $110,000. If Boris accept the best offer, then his opportunity cost will be the $105,000 and the $95,000 which he gave up.