Question

Susan is trying to decide whether to quit her $20,000 per year job so she can return to college next year as a full time student. if she goes to college next year, her books and supplies will cost $500, tuition will cost $3,000, and her other expenses (transportation, housing, and food) will increase by $2,000. what is susan's opportunity cost of attending college next year?

Answer 1

Her opportunity cost is $25500 because she is giving up her $20000.00 a year job and taking on more housing expenses and the cost of attending college. If she kept her job she would keep the $20000.00 and not incur the expenses of attending school.