b) After you graduate, you have decided to accept a position working at the Bureau of Labor Statistics for $45,000.00 a year. The two other offers you received were working for Wal-Mart for $38,000 and working for Ernst and Young consulting for $42,000. Of these two offers, you would have preferred the job at Ernst and Young. What is the opportunity cost of accepting the position at the Bureau of Labor Statistics?

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Business

Santos Garner

23 November, 06:34

b) After you graduate, you have decided to accept a position working at the Bureau of Labor Statistics for $45,000.00 a year. The two other offers you received were working for Wal-Mart for $38,000 and working for Ernst and Young consulting for $42,000. Of these two offers, you would have preferred the job at Ernst and Young. What is the opportunity cost of accepting the position at the Bureau of Labor Statistics?

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Eva Martin · Answer 1

What is the opportunity cost of accepting the position at the Bureau of Labor Statistics?

Opportunity Cost=3000

Explanation:

Opportunity costs represent the benefits an individual, investor or business misses out on when choosing one alternative over another.

Opportunity Cost=FO-CO

where:

FO=Return on best foregone option

CO=Return on chosen option

Opportunity Cost=45000-42000

Opportunity Cost=3000