John has three options for summer work.He can do lawn work for $100 per week, babysit for $125 per week, or work at the local pool for $175 per week.All of the options would require approximately 20 hours of work per week.In addition, if he chooses to work at the pool, he will incur $20 in gas costs per week.The opportunity cost if he chooses to babysit is:
A)$100
B)$175
C)$155
D)$105

Question

Quizplus · Accepted Answer

The opportunity cost of choosing to babysit is the next best alternative foregone, which is working at the pool. The pool job pays $175, but after subtracting the $20 gas cost, the net income is $155.

John Has Three Options for Summer Work