Say that Larry, an attorney, charges $400 per hour. He decides to close his office one afternoon to paint the office himself, thinking that he's saving money on the costs of hiring professional painters. However, the painting took him four hours, effectively costing him $1,600 in lost wages. Let's say professional painters would have charged Larry $1,000 for the work.  

What is Larry's opportunity cost if he paints the office himself?

Answer rating: 100% (QA)

Opportunity cost is the cost of an alternative that ... View the full answer