Lynnette is considering leaving her current position to open an ice cream shop. Lynnette's current salary is $77,000. Annual ice cream shop revenue and costs are estimated at $250,000 and $210,000, respectively. is the opportunity cost of remaining employed.
A) $287,000
B) $210,000
C) $40,000
D) $77,000

Question

Quizplus · Accepted Answer

The opportunity cost of remaining employed is the net benefit Lynnette foregoes by not opening the ice cream shop, which is the difference between the shop's revenue and costs ($250,000 - $210,000 = $40,000).

Lynnette Is Considering Leaving Her Current Position to Open an Ice