You plan to go to school this summer. If you do, you won't be able to take your usual summer job that pays $4 comma 000 for the summer. The cost of tuition is $3 comma 000 and textbooks cost $300. You live with your family, which covers your living expenses of $1 comma 600. What is your opportunity cost of going to school this summer?

Question

Swanson

Business

19 March, 01:34

You plan to go to school this summer. If you do, you won't be able to take your usual summer job that pays $4 comma 000 for the summer. The cost of tuition is $3 comma 000 and textbooks cost $300. You live with your family, which covers your living expenses of $1 comma 600. What is your opportunity cost of going to school this summer?

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Answers (1)

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Ben Meyers · Answer 1

Opportunity cost = $7,300

Explanation:

Given:

Summer job pay = $4,000

The cost of tuition fee = $3,000

Textbooks cost = - $300

Opportunity cost = ?

Computation of opportunity cost of going to school:

Opportunity cost = Summer job pay + The cost of tuition fee + Textbooks cost

Opportunity cost = $4,000 + $3,000 + $300

Opportunity cost = $7,300