Question

ricardo works part time at a local computer store. one day, his manager approaches him about moving from cashier to floor supervisor. ricardo is excited because the promotion comes with a raise; however, the extra work hours would take away from time with his friends and family. in the end, he decides to take the promotion.
what is ricardos opportunity cost?
○ losing extra time to spend with his friends and family
○ being able to use the extra money for summer football camp
○ losing the ability to spend any time with his family
○ receiving another promotion in six months

Explanation:

Opportunity cost is the value of the next - best alternative forgone. When Ricardo takes the promotion, he gives up (forgoes) the extra time with friends and family. Option B is a benefit of the promotion, not an opportunity cost. Option C is an extreme over - statement as it says "any time" which is not indicated. Option D is a future potential outcome not related to the immediate decision's opportunity cost.

Answer:

A. losing extra time to spend with his friends and family