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charle [14.2K]
2 years ago
13

Like a good economist, you calculated the opportunity cost of getting your college degree. Suppose that at your university, you

will pay $10,000 each year for tuition, $2,500 each year for textbooks, and $12,000 per year for room and board. Before you left for college, your boss at your high-school job offered you a job paying $20,000 per year.
Assume that if you decided not to go to college, your parents would not let you live at home.
What is your opportunity cost for four years of college? $_______
Business
1 answer:
Vikki [24]2 years ago
8 0

Answer:

$130,000

Explanation:

Calculation for the opportunity cost for four years of college

The first step is to calculate for the cost of education per year

Using this formula

Cost of education per year =Tuition+Text book +Room and board

Let plug in the formula

Cost of education per year =$10,000+$2,500+$12,000

=$24,500

Second step is to calculate the return in a situation were we decided not to go to college

$20,000-$12,000=$8,000

The last step is to calculate for the opportunity cost for 4 years of college:

Using this formula

Opportunity cost =Cost of education per year+ Return * Numbers of year

Where,

Cost of education per year=$24,500

Return =$8,000

Numbers of years =4

Let plug in the Formula

Opportunity cost =($24,500+$8,000)*4

Opportunity cost =$32,500*4

Opportunity cost =$130,000

Therefore the opportunity cost for four years of college will be $130,000

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A machine with a book value of $80,000 has an estimated five-year life. A proposal is offered to sell the old machine for $50,50
34kurt

Answer:

Company should continue with old machine (Alternative 1)

Explanation:

Preparation of a differential analysis dated April 11 on whether to continue with the old machine (Alternative 1) or replace the old machine (Alternative 2)

DIFFERENTIAL ANALYSIS

Continue with old machine(Alternative 1) ; Replace with old machine(Alternative 2); Differential effect on income

REVENUES

Proceeds from sale of machine

$0 $50500 $50500

COSTS

Purchase price $0 -$75000 -$75000

Direct labor -$56000 -$37000 19000

(11200*5 = -56000)

(7400*5 = -37000)

Income (loss) -$56000 -$61500 -$5500

Based on the above differential analysis the Company should continue with OLD MACHINE (Alternative 1)

6 0
3 years ago
Why do neoclassical economists tend to put relatively more emphasis on long-term growth than on fighting recession?
Bogdan [553]

Neoclassical economics places a larger focus on providing extra options and <u>improving living standards, </u><u>which are ultimately decided by long-term progress.</u>

As a result, it focuses on long-term growth rather than fighting recessions.

In actuality, neoclassical economics holds that a product's price is mostly influenced by its manufacturing costs. According to neoclassical economics, the primary factor for client decision-making therefore becomes price.

As a result, letting the neoclassical economists concentrate on prices is not the best way to combat the recession. Long-term economic performance is always emphasized by neoclassical economists.

Note that the neoclassical approach to macroeconomics emphasizes the idea that, over time, the economy tends to recover to its potential GDP and natural unemployment rate.

Learn what John Maynard Keynes would recommend to fight the recession: brainly.com/question/25586856


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8 0
1 year ago
During 2014 and 2015, Danny pays property taxes of $3,500 each year on a piece of land. During 2014, the land is vacant and unpr
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Answer: the answer is C deduct $3500 each year.

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2 years ago
A reading researcher does what
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Answer:

They reveal how the author(s) interpreted the findings of their research and presented recommendations or courses of action based on those findings.

Explanation:

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Metroplex Corporation will pay a $2.50 per share dividend next year. The company pledges to increase its dividend by 4.70 percen
postnew [5]

Answer: $27.47

Explanation:

Given: Growth rate =  4.70% per year = 0.0470 per year

Dividend of next year = $2.50

Expected rate of return on Stock =  13.80% =0.1380

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7 0
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