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11 August, 01:56

if Jane attends graduate school, it will take her two years, during which time she will earn no income. She will pay a total of $100,000 for tuition, $20,000 $2,000 for books. If she spends the two y cars working rather than attending college, she will pay a total oft $18,000 for room and board, pay no intuition, and buy no books. Based on this information, Jane's economic cost of attending graduate school would be $175,000 if, over the two years, she could earn a total of 53,000 instead of attending graduate school. $55,000 instead of attending graduate school. $71,000 instead of attending graduate school. $73,000 instead of attending graduate school. c. d.

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  1. 11 August, 02:09
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    she could earn a total of $71,000 instead of attending graduate school.

    Explanation:

    economic costs = accounting costs + opportunity costs

    Jane's accounting costs = $100,000 in tuition + $20,000 room and board + $2,000 books

    Jane's opportunity costs = unearned wages - $18,000 room and board (already included in accounting costs)

    if Jane's economic cost = $175,000, then her unearned wages would equal:

    $175,000 = $122,000 + unearned wages - $18,000

    $175,000 = $104,000 + unearned wages

    $71,000 = unearned wages
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