Amanda can choose between two alternatives after high school. She can either attend a university or work at her father's grocery store. Amanda will have to pay $9,000 for tuition and fees to enroll in the university. However, if she decides to work at the grocery store, she will earn $500 per week. If Amanda decides to go to college, the opportunity cost of her decision will be:

Question

Julie Stevenson

Business

12 July, 18:57

Amanda can choose between two alternatives after high school. She can either attend a university or work at her father's grocery store. Amanda will have to pay $9,000 for tuition and fees to enroll in the university. However, if she decides to work at the grocery store, she will earn $500 per week. If Amanda decides to go to college, the opportunity cost of her decision will be:

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Answers (1)

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Kash Murray · Answer 1

500 dollars per week will be their opportunity cost.

Explanation:

The opportunity cost is the best rejected alternative for each factor. In this case, as we are checking for Amanda's time it will be the lost wages from going to college

If Amanda invest saving, the alternative investment interest will be the opportunity cost.

If it use a house, the alternative opportunity cost will be the proceeds from renting.