Question

Larry was accepted at three different graduate schools, and must choose one. Elite U costs $50,000 per year and did not offer Larry any financial aid. Larry values attending Elite U at $60,000 per year. State College costs $30,000 per year, and offered Larry an annual $10,000 scholarship. Larry values attending State College at $40,000 per year. NoName U costs $20,000 per year, and offered Larry a full $20,000 annual scholarship. Larry values attending NoName at $15,000 per year.

the oppurting cost of attending state college is $35,000.
I have the answer but i need this explained to me.
1. how to find explicit and implicit costs?

Answer 1

The answer is very easy i will explain you

Step-by-step explanation:

first you have to know what is what, lets start, to correct handling of your money, the main thing is to visualize the smallest details that allow you to make the decision of which university is more feasible for your studies.

The implicit costs also known as opportunity costs are those that are visualized before investing in something, in this case they are universities, the best factor is to see if the cost of the university is compensated with its academic level and if it meets our needs as student.

Explicit costs are already about the payment itself, the above factors are no longer considered more than the investment on the university, and the losses and gains that they can generate.

I hope this answer has helped you to solve your doubt, I give you an excellent day.