Question

Suppose your expenses for this term are as​ follows: tuition:​ $28,000, room and​ board: $9,000, books and other educational​ supplies: $2,500.​ Further, during the​ term, you can only work partminustime and earn​ $16,000 instead of your fullminustime salary of​ $42,000. What is the opportunity cost of

Answer 1

$ 56,500

Step-by-step explanation:

Given:

Tuition expenses = $ 28,000

Room and board expenses = $ 2,500

Earning from the part time = $ 16,000

Fulltime salary = $ 42,000

Now,

the opportunity cost is given as:

= Full time working salary + (sum of expenses) - Earnings

on substituting the values, we get

opportunity cost = $ 42,000 + ( $ 28,000 + $ 2,500 ) - $ 16,000

or

opportunity cost = $ 56,500