Paula has the following information to evaluate-her current salary of $59,000 versus total revenues of $170,000 and expenses of $76,000 from starting a new business. How much is the opportunity cost associated with starting the new business?
A)$59,000
B)$170,000
C)$94,000
D)$76,000

Question

Quizplus · Accepted Answer

The opportunity cost of starting a new business for Paula is the salary she would forego, which is $59,000. This is because opportunity cost refers to the value of the next best alternative that is given up, which in this case is her current salary.

Paula Has the Following Information to Evaluate-Her Current Salary of $59,000