Answer to Question #70167 in Economics for Hailey

Question

Mr chan and Mr lee are secondary school teachers. They earn the same salary of $30000 a month.

(a) Explain whether Mr Chan 's and Mr Lee's opportunity cost of being a teacher would definitely be the same.

(b) Explain whether the opportunity cost of quitting their jobs as teachers would definitely be the same.

Answer 1

(a) Mr Chan 's and Mr Lee's opportunity cost of being a teacher wouldn't definitely be the same, if they have different opportunities except being a teacher.
(b) The opportunity cost of quitting their jobs as teachers would definitely be the same, because they both earn the same salary, which is their opportunity cost.