Question

Every society faces​ trade-offs because we live in a world of scarcity. Suppose a​ student-athlete has the opportunity to earn ​$200 comma 000 next year playing for a minor league baseball​ team, ​$300 comma 000 next year playing for a European professional football​ team, or​ $0 returning to college for another year. The opportunity cost of the​ student-athlete returning to college next year is ​$ 1000,oooo000 nothing. ​(Enter your response as an​ integer.)

Answer 1

Answer:-

Minor league base ball of returning to college is the next best alternative available to the student. In this case, the next best alternative for the student is to earn  ​$300 comma 000 next year playing for a opportunity Cost of returning to college.

Thus, Minor league = Value of next best alternative forgone = $300,000 as next best alternative is playing because $200,000<$300,0000.

The opportunity cost of the​ student-athlete returning to college next year is ​$300,000.