Lisa must be making at $6,000 from her business before quitting her full-time job
What is opportunity cost?
Opportunity cost is the benefits forgone as a result of taking alternative course of action.
In this case, the opportunity cost of leaving her full-time job is the salary or earnings from the full-time job that would be lost since Lisa would no longer earn salaries from her full-time employment.
Based on this, for the decision to settle for her business as against working full-time as an employee to be economically profitable, she must be earning the same as her full-time pay before the abandoning the full-time job, otherwise, taking the decision when income of the business is lower than $6,000 means a reduction in her standard of living.
The correct option in this case is business income of $6,000 which leaves Lisa in the same position as she was before.
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