Question

Claire is on her way to her job at a call center where she was planning on spending three hours. She can drop in and work any hour she wants to and earn $12 per hour. Her friend calls and invites her to spend the next three hours bungee jumping. Claire decides to go with her friend, which tells us Claire's opportunity cost of working for three hours is:

Answer 1

Answer:

It should be greater than $36

Explanation:

The opportunity cost of working is the amount of money sacrificed or could have earned if the individual was not working. In this case, Claire has decided to go with her friend which means that the opportunity cost of not working is less than the benefits receives from going out. Because she is not working it means that the opportunity cost of working is more than 36 dollars, which is the income she could have earned in 3 hours.

Answer 2

Answer:

$36

Explanation:

Opportunity costs is the benefits an individual, investor or business misses out on when making another choice over another.

In the case of Claire she had to make a choice of working for three  hours and earning $36 or going bungee jumping with her friend. The opportunity cost of going bungee jumping with her friend for three  hours will be $36