Question

Kris has two choices for a part-time job after school. Kris could make $10 per hour entering data for a local company, but none of his friends work there. The second job offer pays $8 per hour at a local restaurant, and many of his friends work there.
If Kris works 20 hours per week, what would be the weekly opportunity cost of accepting the job at the restaurant?

A) $120
B) $160
C) $20
D) $40

Answer 1

The answer is D) $40

Answer 2

I'll do a similar problem, and I challenge you to do this using similar techniques!

If John works for 15$ a hour with his friends rather than working for 20$ an hour for 50 hours a month, what's the monthly opportunity cost?

John would make 20*50=1000 dollars a month at the second option as he makes 20$ an hour 50 times. Next, if he works with his friends, he makes 15*50=750 dollars as he works 50 hours for 15 dollars an hour, or adds 15 50 times.

His opportunity cost would be <highest money>-<lowest money>=1000-750=250 dollars a month. Good luck on this question, and feel free to ask further questions!