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Alenkasestr [34]
3 years ago
10

Justin graduates from high school in one month. He already has an offer for a full-time job that would pay $25,000 a year. He is

also considering going to college for the next four years. Tuition is $8,000 a year. Room and board is $10,000 annually. If he works, he will not be able to make more than $3,000 a year doing part-time and summer work. Opportunity cost involves what is given up. What is the opportunity cost of attending college – explain in words, not mathematically?
History
1 answer:
Serga [27]3 years ago
3 0

Answer:

$25,000

Explanation:

Opportunity cost is the value of an alternative forgone. If he attends college, he will forgo $25,000 which he would have made if he did not go to college. Hence, the opportunity cost of Justin going to college is $25,000.

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