Question

Understanding opportunity cost before you started applying for college, a job recruiter offered you a full-time cashier position at a doctor’s office, earning an after-tax salary of $22,000 per year. However, you turn down this offer and attend your first year of college. The additional monetary cost of college to you, including tuition, supplies, and additional housing expenses, is $34,000. You decide to go to college probably because?

A. You value a year of college at $22,000
B. You value a year id college of $34,000
C. You value a year of college less than $34,000
D. You value a year of college at more than $56,000

Answer 1

Answer: You decide to go to college probably because"You value a year of college at more than $56,000"

Opportunity costs are the benefits an respective individual, leaves while determining to pick one alternative over another.

So, you will attend college if you perceive value of attending college more than ($22,000 + $34,000)= $56,000