Question

Suppose your expenses for this term are as follows: tuition: $12,000, room and board: $6,500, books 4) and other educational supplies: $1,500. Further, during the term, you can only work part-time and earn $3,500 instead of your full-time salary of $14,000. What is the opportunity cost of going to college this term, assuming that your room and board expenses would be the same even if you did not go to college?
A) $13,500
B) $20,000
C) $24,000
D) $30,500

Answer 1

Answer:

The opportunity cost is $24,000

Explanation:

Giving the following information:

Suppose your expenses for this term are as follows:

tuition: $12,000

Room and board: $6,500

Books and other educational supplies: $1,500.

Further, during the term, you can only work part-time and earn $3,500 instead of your full-time salary of $14,000.

Costs of college:

tuiton= 12000

Books= 1500

Lost of salary= 10,500

Total= $24,000