Question

Ricardo works part time at a local computer store. One day, his manager approaches him about moving from cashier to floor supervisor. Ricardo is excited because the promotion comes with a raise; however, the extra work hours would take away from time with his friends. In the end, he decides to take the promotion.

Answer 1

Answer:

His opportunity cost is "loosing the extra time he stays with his friends."

Explanation:

Opportunity cost simply refers to that benefit missed as a result of choosing one alternative over the other. In this scenario, Ricardo chooses to take the promotion and forgo spending time with his friends. Opportunity cost is also the same as the forgone alternative. Hence the opportunity cost in this scenario is the time that Ricardo spends with his friends.