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What is your opportunity cost of going to Florida in the following scenario?
(Opportunity Cost) You can either spend Spring Break working at home for $80 per day for five days or go to Florida for the week. If you stay home, your expenses will total about $100. If you go to Florida, the airfare, hotel, food and miscellaneous expenses will total about $700.
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If you stayed home from Spring Break, you would have gotten $400 from working. However, you would have incurred expenses of $100 so your net income would have been $300. If you go to Florida, all of your costs add up to $700. This means that there is a $1000 difference to your finances between going to Florida and staying.
Your opportunity cost for going to Florida, then, is $1000. You can also say that the opportunity cost is whatever you would have done with the $1000 if you had not used it going to Florida.
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