Michael Pate is a Certified Public Accountant. He is currently a manager in the tax department of Earnest & Old, a large CPA firm. As a tax manager, Michael earns $120,000 per year. Recently, Michael and David Shlamst, another tax manager at E&O, have been talking about starting their own accounting firm. If they start their own firm, they believe that first year revenues would be $425,000 and first year operating expenses would be $165,000. Firm profits would be split equally between Michael and David. a. Briefly define opportunity cost. b. What would Michael's opportunity cost be if he decided to stay at E&O? Michael Pate Salary Revenues Operating expenses 120,000 425,000 165,000