2. You make $45,000 per year at your current job with Whiz Kids Consultants. You are considering a job offer from Brainiacs, Inc., that will pay you $50,000 per year. Which of the following are elements of the opportunity cost of accepting the new job at Brainiacs, Inc.?
The increased time spent commuting to your new job
Yes. The increased time spent commuting is a cost you will incur if you accept the new job. That additional time spent commuting—or equivalently, the benefit you would get from spending that time doing something else—is an opportunity cost of the new job.
The $45,000 salary from your old job
Yes. One of the benefits of the new job is that you will be making $50,000. But if you take the new job, you will have to give up your current job; that is, you have to give up your current salary of $45,000. So $45,000 is one of the opportunity costs of taking the new job.
The more spacious office at your new job
No. A more spacious office is an additional benefit of your new job and does not involve forgoing something else. So it is not an opportunity cost.