Question

Tom is going to quit his job to pursue his phd in economics, which will take him 6 years to complete. he currently makes $55,000 per year as a high school teacher. while going to school, he will receive a stipend of $24,000 per year plus $6,000 per year to help cover food and rent. his living expenses are the same regardless of what he does. what is tom's opportunity cost of pursuing his phd? $150,000 $180,000 $186,000 $330,000

Answer 1

($55,000-($24,000+$6,000))*6=$150,000
Tom's opportunity cost of pursuing his phd $150,000