Trade-offs & Opportunity Cost

1. Matt has two choices for a summer job.The first opportunity is at a computer manufacturer, where he would earn 10.25 an hour.The second opportunity is with a landscaping company, where he could work and have lunch with three of his closest friends every day.The landscaping job would pay $8.65 per hour.

1a. For one 40-hour workweek, what would be the opportunity cost, in dollars, of accepting the landscaping job?

1b. What would be the opportunity cost of accepting the job with the computer manufacturer?

2. Maisa has earned $50 babysitting.She has two choices for spending her money.The first opportunity is to buy two concert tickets to see her favorite band.The second opportunity is to purchase a new outfit from the Gap.

2a. What is the opportunity cost of buying the two concert tickets?

2b. What is the opportunity cost of buying the new outfit the Gap?

3. Rodjha has two universities offering him a place to play football next year.The first opportunity is at South Carolina, who is offering Rodjha a $10,000 scholarship.The second opportunity is at Auburn, who is offering Rodjha a $7,000 scholarship, and where his girlfriend will be attending.

3a. What would be the opportunity cost, in dollars, of attending Auburn?

3b. What would be the opportunity cost of attending South Carolina?