Mary earns $100/day at a flower shop. She will take 2 days off without pay to attend an out of town wedding. Transportation will cost $180 round trip. Hotel $99/day for 2 nights. What is the opprotunity cost?

Answer 1

If she had worked those two days, she would make +$200

Instead, she spends $180 + $198 = $378

The total opportunity cost is 378 + 200 = 578. This is how much money she'll lose by going on the trip instead of working