Question

John has to choose between two jobs: one that offers him $50 per hour and one that offers him $35 per hour. the opportunity cost of choosing the job that offers him $50 per hour is:

Answer 1

Answer:

$35 per hour

Explanation:

Data provided;

The John has 2 alternatives to choose from

Alternative 1 offers him $50 per hour

Alternative 2 offers him $35 per hour

John opts for the Alternative 1 i.e $50 per hour

Now,

The opportunity cost is given as the next high valued alternative and for the given question, we have the next high valued alternative of $35 per hour

Hence,

the opportunity cost of choosing the alternative 1 i.e job offering $50 per hour is $35 per hour