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 a decision is made. Ricardo decided to take the promotion. The promotion requires extra work hours, and the alternative he gave up is the extra time he could have spent with his friends and family. The option “being able to use the extra money for summer football camp” is a benefit of the promotion, not a cost. The option “losing the ability to spend any time with his family” is an over - exaggeration as it's just extra time, not all time. The option “receiving another promotion in six months” is not related to the trade - off he made here.

Answer:

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