Jane just graduated from college with a Bachelor of Science Degree in Computer Information systems. She received the following job offers. Jones and Associates at a starting salary of $30,000. Smith Brothers at a starting salary of $33,000. Joan Cannery Consulting at a starting salary of $35,000. Consultants -R -We at a starting salary of $32,000. Andrews Computer Vendors at a starting salary of $36,000. If she takes the job with Jones and Associates, her opportunity cost is
A) $30,000.
B) $32,000.
C) $33,000.
D) $35,000.
E) $36,000.

Question

Quizplus · Accepted Answer

The opportunity cost of a decision is the value of the next best alternative that is foregone. In this case, if Jane takes the job with Jones and Associates at $30,000, she foregoes the highest paying job offer from Andrews Computer Vendors at $36,000. Therefore, her opportunity cost is $36,000.

Jane Just Graduated from College with a Bachelor of Science