Question

Maureen's college raises the cost of room and board per semester. This increase raises Maureen's opportunity cost of attending college ____.
a. only if the amount she would have to pay for room and board if she didn't attend college rose by less than the increase in the amount her college charges. An increase in opportunity cost increases Maureen's incentive to attend college.
b. even if the amount she would have to pay for room and board if she didn't attend college rose by the same amount. An increase in opportunity cost increases Maureen's incentive to attend college.
c. only if the amount she would have to pay for room and board if she didn't attend college rose by less than the increase in the amount her college charges. An increase in opportunity cost reduces Maureea's incentive to attend college.
d even if the amount she would have to pay for room and board if she didn't attend college rose by the same amount An increase in opportunity cost reduces Maureen's incentive to attend college.

Answer 1

Answer:

d even if the amount she would have to pay for room and board if she didn't attend college rose by the same amount An increase in opportunity cost reduces Maureen's incentive to attend college.

Explanation:

Opportunity cost in decision making has to do with an alternative foregone. If you make a choice of an alternative over another, therefore the extrinsic cost which is the benefit you will not have, for choosing that alternative is the opportunity cost.

Applying the above to the given scenario, it does not matter the range of increase in the college cost or room and board cost if she did not attend college; It is a general conclusion and a fact that an increase in the level of opportunity costs, it will reduce Maureen's incentive to want to go to college.