Question

You can either spend spring break working at home for $80 per day for five days or go to Florida for the week. If you stay home, your expenses will total about $100. If you go to Florida, the airfare, hotel, food and miscellaneous expenses will total about $700. What’s your opportunity cost of going to Florida?

Answer 1

$1000

Step-by-step explanation:

The Opportunity cost refers to the benefit that is foregone by choosing some other alternative.

If I stays at home, it costs = $100

If I go to Florida, it costs = $700

Therefore, the opportunity cost of going to Florida is the earning that I would get from staying at home.

Total saving from staying at home:

= Trip expenses + (earning - expenses)

= $700 + [5($80) - $100]

= $700 + $300

= $1000