Ted quits his $60,000-a-year job to be a stay-at-home dad. 60000 is the opportunity cost of his decision.
According to microeconomic theory, an activity's opportunity cost is the value or gain that is forfeited in exchange for engaging in that activity as opposed to engaging in an alternative activity. Simply put, it means you forfeit the chance to engage in a different activity if you choose one.
The activity that yields the highest return among all others, net of opportunity costs, is the one that is considered to be the ideal activity. You cannot rent out a car, for instance, if you buy it and use it only for personal transportation. However, if you rent it out, you are not allowed to use it for personal transportation.
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