Suppose your expenses for this term are as follows: tuition: $12,000, room and board: $6,500, books and other educational supplies: $1,500. Further, during the term, you can only work part-time and earn $3,500 instead of your full-time salary of $14,000. What is the opportunity cost of going to college this term, assuming that your room and board expenses would be the same even if you did not go to college?

Question

Guillermo

Business

27 July, 19:16

Suppose your expenses for this term are as follows: tuition: $12,000, room and board: $6,500, books and other educational supplies: $1,500. Further, during the term, you can only work part-time and earn $3,500 instead of your full-time salary of $14,000. What is the opportunity cost of going to college this term, assuming that your room and board expenses would be the same even if you did not go to college?

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Zechariah Zhang · Answer 1

The opportunity cost of going to college this term, assuming that your room and board expenses would be the same even if you did not go to college is $24,000.

Explanation:

Opportunity cost = income forgone + tuition + books - income earned

= $14000 + $12000 + $1500 - $3500

= $24000

Therefore, the opportunity cost of going to college this term, assuming that your room and board expenses would be the same even if you did not go to college is $24,000.