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Sarah Earns $40,000 Per Year Working for a Large Corporation

Question 56

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Sarah earns $40,000 per year working for a large corporation.She is thinking of quitting this job to work full time in her own business.She will invest her savings of $50,000 (which currently has an annual 10% rate of return) into the business.Her annual opportunity cost of this new business is


A) $0.
B) $40,000.
C) $45,000.
D) $90,000.

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