Question

Isaac has four potential jobs to consider, each with different salary offers. From highest to lowest, the salaries are: $47,500, $46,000, $45,000, and $42,000. Based on the information provided, if Isaac accepts the highest-paying position, what is his opportunity cost of this position?

Answer 1

opportunity cost of this position is $46000

Step-by-step explanation:

we know here there are 4 salary they are

$47,500 , $46,000 , $45,000 and $42,000

there are highest salary is $47500

and lowest salary is $42000

and if he is not choose this job

so then his next best alternative salary will be paying for job is $46000

so here we can at that Isaac's opportunity cost by choosing job with salary this $47500 is $46000

opportunity cost of this position is $46000