Question

Bill and Sam both attend the same college and have the same expenses for tuition, books, and supplies. However, Bill is a famous athlete who could be earning $1 million per year playing professional baseball if he were not attending college while Sam could earn $12,000 a year serving hamburgers if he were not attending college. It follows that:________.

A. the opportunity cost of attending college is greater for Bill than for Sam.
B. the opportunity cost of attending college is the same for both Bill and Sam because they pay the same tuition and have the same costs for books and supplies.
C. the opportunity cost of attending college is greater for Sam than Bill.
D. Bill is insane.

Answer 1

Answer: the opportunity cost of attending college is greater for Bill than for Sam (A)

Step-by-step explanation:

Due to choice, opportunity costs come into play. Opportunity cost is the real cost of forgone alternative. It is what an individual let's go in order to get something else.

Bill as a famous athlete could be earning $1 million per year while playing professional baseball while Sam could earn $12,000 per year selling hamburgers. Due to the fact that they're in college, both of them had to let go of their professions.

Looking at the figures involved for both Bill and Sam, we can see that the opportunity cost for Bill is higher than that of Sam because Bill's $1,000,000 pee year is greater than Sam's $12,000 pee year

Answer 2

The correct option is A,the opportunity of attending college is greater for Bill than for Sam

Step-by-step explanation:

Opportunity is the cost or benefit of alternative course of action not taken because of sticking to the current course of action.

In other words, Bill is loosing $1 million yearly because he chose to attend college while Sam is only loosing $12,000 a year.

From the foregoing, it is clear that Bill is loosing more,hence his cost of alternative forgone is higher than that of Sam,as a result he could be said that Bill has a higher opportunity cost