Madeleine Allows Herself $100 Per Month for Purchasing Coffee

question 78

Multiple Choice

Madeleine allows herself $100 per month for purchasing coffee.The diagram below illustrates the choices available to her.
FIGURE 1- 3
-Chantal has a full- time job as a geological engineer and earns an annual after- tax salary of $85 000.She decides to leave her job for 6 months to scuba dive on the Great Barrier Reef in Australia,and incurs costs of $7500 for course equipment and certification,$2500 for airfare,and $12 000 for regular living expenses in Australia (equal to her living expenses at home) .What is Chantal's opportunity cost for this 6- month,unpaid leave of absence?

• A)$42 000
• B)$65 000
• C)$22 000
• D)$12 000
• E)$52 500

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