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31 August, 00:42

Jamar used to work as an office manager, earning $40,000 per year. He gave up that job to start a life-coaching business. In calculating the economic profit of his life-coaching business, the $40,000 income that he gave up is counted as part of the life-coaching business's

A. total revenue.

B. opportunity costs.

C. explicit costs.

D. marginal costs.

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  1. 31 August, 01:24
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    B. Opportunity Cost

    Explanation:

    Opportunity cost is the alternative forgone or sacrifice made in other to satisfy another want. it refers to the wants that are left unsatisfied in other to satisfy another want.

    In the case of Jumar, the money he earned as an office manager ($40,000) could be referred to as the opportunity cost when he started his life coaching business.
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