When asked in a television interview what she felt she was missing out on becaus

Question

When asked in a television interview what she felt she was missing out on because she spent most of her time training for the Olympics, a rower answered, “A normal social life.” She also revealed that she had given up a job that paid $20,000 per year in order to train full-time. She was fortunate to receive a grant from Sport Canada of $10,000 per year, but this was not enough to cover all of her expenses. Her food and rent were $5,000 per year and training expenses (coach’s fee, equipment costs etc.) were$16,000 per year.

• What is the annual opportunity cost of “going for Gold” for this rower?

• What is the annual opportunity cost to Canada of training this rower?

• In general, what is the annual opportunity cost to Canada of sending this rower and other athletes to the Olympics?

The other Chegg is answer is incomplete. Please do not copy/paste it.

Explanation / Answer

Given that the rower had given up a job that paid $20,000 per year in order to train full-time, this represents the cost of forgone alternative: the opportunity cost of training. Here other expenses include food and rent cost at $5,000 per year and training expenses at $16,000 per year.

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