Question

John works part-time for a moving company and earns a total of $200 each weekend. Next weekend a friend invited him on a rafting trip that will cost him a total of $346. If he goes on the trip he will not be able to work. What is John’s opportunity cost of going on the trip? Enter a whole number with no dollar sign.

Answer 1

$546

Step-by-step explanation:

Wages earned by John on each weekend = $200

Cost of going on a rafting trip = $346

The opportunity cost refers to the benefit that is foregone from the next best alternative.

Here, the opportunity cost of going on a trip is the foregone money income from part time job and the expenses occurred on a trip.

Therefore, the total opportunity cost is as follows:

= Wages from part time job + Cost of going to a trip

= $200 + $346

= $546