Question

Hal currently works as the fry guy at Burger Haven but is thinking of quitting his job to attend college full time next semester. Which of the following would be considered an opportunity cost of attending college?

A) the cost of the cola that Hal will consume during class
B) the cost of commuting to the Burger Haven job
C) the cost of the textbooks
D) Hal's lost wages at Burger Haven

Answer 1

The opportunity cost for Hal attending college full time is D) Hal's lost wages at Burger Haven, as it represents the value of what he gives up (continuing to work) to pursue his education.

Step-by-step explanation:

When it comes to making decisions, the concept of opportunity cost is crucial in economics and business. The opportunity cost of a choice is the value of the best alternative that one gives up when making a decision. In Hal's case, the opportunity cost of attending college would be the benefits he forsakes by not choosing the alternative, which is working at Burger Haven.

Therefore, the correct answer is D) Hal's lost wages at Burger Haven. The other options, such as the cost of cola, textbooks, and commuting, are actual costs associated with attending college or commuting to work. They are not forgone alternatives as a result of attending college. In contrast, lost wages at Burger Haven represent what Hal would have earned if he had decided not to attend college but to continue working.

Answer 2

Option (d) is correct.

Step-by-step explanation:

The opportunity cost refers to the cost of selecting some other alternative over other. It is the value of activity or the satisfaction obtained from the good foregone to choose other alternative.

In our case, if Hal decided to go to college then he have to left his job where he earned some money income.

Therefore, the opportunity cost of attending college is the money income that Hal lose as he could have earned that income.