Question

The college tuition is $15,000 a year. Instead of going to college, Ron could take a full time job that pays $20,000. His health and retirement benefits are $5,000 and $8000 for a year respectively. If Ron decides to go to college, what is his opportunity cost of attending college for one year

Answer 1

Answer:

the opportunity cost of attending college for one year is $33,000

Explanation:

The computation of the opportunity cost is shown below:

= Full time job + health and retirement benefits

= $20,000 + $5,000 + $8,000

= $33,000

hence, the opportunity cost of attending college for one year is $33,000

We simply added the above 3 items so that the correct value could come

And ignored the college tuition fees