Question

You plan to go to school this summer. If you​ do, you​ won't be able to take your usual summer job that pays ​$4 comma 000 for the summer. The cost of tuition is ​$3 comma 000 and textbooks cost ​$300. You live with your​ family, which covers your living expenses of ​$1 comma 600. What is your opportunity cost of going to school this​ summer?

Answer 1

Answer:

Opportunity cost = $7,300

Explanation:

Given:

Summer job pay = $4,000

The cost of tuition fee = ​$3,000

Textbooks cost ​=- $300

Opportunity cost = ?

Computation of opportunity cost of going to school:

Opportunity cost = Summer job pay + The cost of tuition fee + Textbooks cost

Opportunity cost = $4,000 + $3,000 + $300

Opportunity cost = $7,300