Allison Is Contemplating a Job Offer with an Advertising Agency

Multiple Choice

Allison is contemplating a job offer with an advertising agency where she will make $54,000 in her first year of employment. Alternatively, Allison can begin to work in her father's business where she will earn an annual salary of $38,000. If Allison decides to work with her father, the opportunity cost would be:

A) $0.
B) $38,000.
C) $54,000.
D) $92,000.
E) irrelevant in deciding which job offer to accept.