Question

Choosing to go to get a job right out of high school instead of going to college is an example of a(n) _____.

fixed cost

opportunity cost

variable cost

none of the above

Answer 1

opportunity cost

Step-by-step explanation:

Opportunity cost is the forfeited benefits from the next best alternative. In every decision, one has to choose from several available options. Each of the options has its advantages. After selecting the best option, the benefits of the second-best alternatives is the opportunity cost.

Choosing between working and attending college is an example of opportunity. Each of the two options has its advantages. Preferring one alternative means sacrificing the benefits of the other.