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Sam Smith is currently employed as a mechanical engineer and is paid $65,000
per year plus benefits thatare equal to 30% of his salary. Sam wants to begin a
consulting firm and decides to leave his current job. After his first year in
business, Sam's accountant informed him that he had made $45,000 with his
consulting business. Sam also notices that he paid $6,000 for a health
insurance policy, which was his total benefit during his first year. What was
Sam's opportunity cost?
What was Sam's opportunity cost?

Sagot :

Khuranashilpa76idn

Sam gave up $65,000 in salary plus $19,500 in benefits or a total of $84,500.

The concept in the back of opportunity value is that the fee of 1 object is the misplaced possibility to do or eat something else; in quick, opportunity cost is the price of the following fine alternative.  benefits foregone by using no longer choosing an alternative direction of motion.

Opportunity cost is the cost of the following satisfactory element you surrender whenever you decide. it's miles the lack of capacity gained from other options when one opportunity is chosen. The concept of an opportunity price became first started by John Stuart Mill. possibility price is the difference in the advantage of a preference you are forgoing compared to the advantage of the choice you're making. you may recognize opportunity fee as an estimation of the way much regret you'll sense for making one desire over every other.

Learn more about Opportunity costs here:-https://brainly.com/question/3611557

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