Question

"If I didn't have class tonight, I would save the $4 campus parking fee and spend four hours at work where I earn $15 per hour." The opportunity cost of attending class this evening is:

Answer 1

the opportunity cost is $64

Step-by-step explanation:

The computation of the opportunity cost to attend the class at the evening is

= Parking fee saved + earning per hour × number of hours

where,

Parking fee saved is $4

Earning per hour is $15

And, the number of hours is 4

Now place these values to the above formula

So, the opportunity cost of attending the class is

= $4 + $15 × 4

= $4 + $60

= $64

hence, the opportunity cost is $64