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?

Question

Business

Hailie Savage

11 May, 16:42

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?

+4

Answers (1)

Know the Answer?

Madeleine Suarez · 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