Final answer:
The opportunity cost for Mary if she takes the job would be $12,000, which is the difference between the job salary and the profit she currently makes from her business. Hence, option B is correct.
Step-by-step explanation:
The concept in the student's question pertains to opportunity cost, which is a key consideration in economics and business decision-making. Opportunity cost represents the value of the next best alternative foregone when a choice is made.
In the scenario provided, if Mary takes the job, she would no longer earn the $38,000 profit from her business. The opportunity cost of taking the job would be the annual profit of her current business, as it is the foregone benefit. Therefore, the most accurate answer is (b) $12,000, which is the difference between the job salary ($50,000) and her current business profit ($38,000).
Thus, the correct option is B.
The complete question is:
Mary has been offered a job with an annual salary of $50,000. However, she currently owns a business that generates an annual profit of $38,000. If Mary decides to take the job, her opportunity cost would be:
a. $0 (if she chooses to continue running her business and forego the job),
b. $12,000 (the difference between the job salary and her current business profit),
c. $20,000 (if she considers the potential additional benefits from the job),
d. $28,000 (the total potential earnings from the job minus the current business profit).
Mary's opportunity cost would be the best answer based on her specific circumstances and considerations.