3 You make 45000 per year at your current job with Whiz Kids

3. You make $45,000 per year at your current job with Whiz Kids Consultants. You are considering a job offe from Brainiacs, Inc, which would pay you $50,000 per year. Is each of the following elements an oppor- tunity cost of accepting the new job at Brainiac, Inc. cents

Solution

Here decision is to accept new job at brainiacs, inc and leaving existing job at whiz kids consulatants.

Opportunity cost is the loss of other alternatives when one is chosen.

a. is not an opportunity cost because here I will be taking new job and is not related to old job to be termed as opportunity cost/loss.

b. This will be opportunity cost because i have to leave $45000 salary which i currently earn.

c. is not an opportunity cost because here I will be sitting in the more spacious office at my new job and will not be losing anything to term as opportunity cost.