Question

Your aunt is thinking about opening a hardware store. She estimates that it would cost $600,000 per year to rent the location and buy the stock. In addition, she would have to quit her $55,000 per year job as an accountant. What is the opportunity cost of something

Answer 1

Answer:

What must be given up to acquire it

Explanation:

Here is the full question :

Your aunt is thinking about opening a hardware store. She estimates that it would cost $500,000 per year to rent the location and buy the stock. In addition, she would have to quit her $50,000 per year job as an accountant.

 What is the opportunity cost of something?

The time it takes to do something

 What must be given up to acquire it

Cost to produce it

What you pay

Opportunity cost is the cost of the next best option forgone when one alternative is chosen over another alternative.

By choosing to open her store, my aunt has to forgo her accounting job. this is her opportunity cost. so her opportunity cost is $55,000