Question: Archer is considering three options: a gap year to study abroad, open a coffee shop in his home town, and working as an electrician in
Archer is considering three options: a gap year to study abroad, open a coffee shop in his home town, and working as an electrician in his home town. If he takes a gap year to study, he will incur $3,000 in airfare and $5000 for housing (if he does not go abroad, he will live with his parents and will not pay rent). If Archer does not study abroad, he will leave his money in his bank account where he does not earn any interest. If he opens a coffee shop, he will make $50,000. Taking a job as an electrician will pay $80,000.What is the total opportunity cost of Archer studying abroad for that year? Assume that if he does not study abroad, Archer stays in his home town and takes the job that pays more money.
A:$88,800
B: $88,000
C: $588,000
D: $58,000
None of the above.
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