Question

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?

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.

Step-by-step 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.