Harry is a computer company executive, earning $200 per hour managing the company and promoting its products. His daughter Quinn is a high school student, earning $6 per hour helping her grandmother on the farm. Harry's computer is broken. He can repair it himself in one hour. Quinn can repair it in 10 hours. Harry's opportunity cost of repairing the computer is lower than Quinn's.

Question

Quizplus · Accepted Answer

Harry's opportunity cost of repairing the computer is $200 (the amount he earns per hour), whereas Quinn's opportunity cost is $6 (the amount she earns per hour). Since $200 is greater than $6, Harry's opportunity cost is higher than Quinn's.

Harry Is a Computer Company Executive, Earning $200 Per Hour