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In a small town, there is a shoe factory which employs workers at $15 an hour, for forty-hour weeks. There is a writer, who expects to finish a novel in nine months. If he does not write the novel, he can teach high school English for $12 an hour. What is his opportunity cost of writing the novel

Respuesta :

Answer:

the amount he would have earned if he taught, $12

Explanation:

Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives

If the writer decides to write, he loses the opportunity to teach and earn $12. This is his opportunity cost.

Also, if he decided to teach instead, his opportunity cost the time he could have spent writing the novel

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