Leah Berry is entering her senior year as an accounting major and has a number o

Question

Leah Berry is entering her senior year as an accounting major and has a number of options for her summer break. Her options for the 3-month break follow: (1) Work full time at a local accounting firm making $1,600 per month. (2) Take a summer class which will cost $600 and work half time making $1,200 per month. (3) Take two classes at a cost of $1,200 and not work at all during the summer. Leah's opportunity cost of taking two classes if she chooses option 3 over option 1 would be A. $0 per month. B. $400 per month. C. $1,600 per month. D. $1,200 per month. summer break.

Explanation / Answer

Answer: $1,600 per month

Because If leah berry choose option 1 than Leah Berry earn $1600 per month. because Leah berry select option 3 than opp cost is $1600.

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