Roberto decides to take a first-aid class at the local Red Cross. The cost of the class is $20. He will pay an additional $5 for transportation to and from the class. In order to attend the class, Roberto will lose three hours at his job, where he earns $8 per hour. What is Roberto's opportunity cost for taking the first-aid class?

Question

Business

Kash Daniel

15 January, 04:28

Roberto decides to take a first-aid class at the local Red Cross. The cost of the class is $20. He will pay an additional $5 for transportation to and from the class. In order to attend the class, Roberto will lose three hours at his job, where he earns $8 per hour. What is Roberto's opportunity cost for taking the first-aid class?

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Answers (1)

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Simone Holden · Answer 1

The answer is: $24

Explanation:

The opportunity cost is the benefit that is given up when someone chooses one alternative over another.

Roberto will not be able to work for 3 hours if he takes the first aid class. So he is giving up 3 hours of work by choosing to take the class.

Opportunity cost = 3 hours x $8/hours = $24