Question

"If I didn't have class tonight, I would save the $4 campus parking fee and spend four hours at work where I earn $10 per hour." The opportunity cost of attending class this evening is:
A. $0
B. $4
C. $40
D. $44

Answer 1

Answer:

Opportunity cost will be $44

So option (d) will be the correct option

Explanation:

We have given that if he is not going to class then he save $4 of campus parking fee

And he work for 4 hours at rate of $10 per hour

So his total earning will be = 4×$10 = $40

Now we have to find the opportunity cost

Opportunity cost will be given by

Opportunity cost = Earning +saving = $40+$4 = $44

So option (d) will be the correct answer