SOLUTION: Barinda is considering running for student government. However, she knows she will have to work about 10 hours fewer per week if elected, and she makes $7 an hour. The campaign w

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Question 1169070: Barinda is considering running for student government. However, she knows she will
have to work about 10 hours fewer per week if elected, and she makes $7 an hour. The
campaign will also cost her about $100 in campaign buttons and posters. What is her
opportunity cost for serving on student government if elected if she actively serves for 30
weeks?
Answer by CPhill(1987) About Me  (Show Source):
You can put this solution on YOUR website!
To calculate Barinda's opportunity cost for serving on student government, we need to consider both the income she would forgo due to reduced work hours and the direct expenses of her campaign.
Here's the breakdown:
**1. Income Foregone (Lost Wages):**
* Reduction in work hours per week: 10 hours
* Hourly wage: $7 per hour
* Lost income per week: 10 hours/week \* $7/hour = $70 per week
* Number of weeks of service: 30 weeks
* Total income foregone over 30 weeks: $70/week \* 30 weeks = $2100
**2. Direct Campaign Costs:**
* Cost of campaign buttons and posters: $100
**Calculating the Total Opportunity Cost:**
The opportunity cost is the sum of the value of the next best alternatives that Barinda is giving up to serve on student government. In this case, it's the total income she won't earn due to reduced work hours plus her direct campaign expenses.
Opportunity Cost = Total Income Foregone + Direct Campaign Costs
Opportunity Cost = $2100 + $100
Opportunity Cost = $2200
Therefore, Barinda's opportunity cost for serving on student government if elected for 30 weeks is **$2200**. This represents the total financial value of what she is giving up to take on the role.