Question

Before you started applying for college, a job recruiter offered you a full-time cashier position at a local retail store, earning an after-tax salary of $24,000 per year. However, you turn down this offer and attend your first year of college. The additional monetary cost of college to you, including tuition, supplies, and additional housing expenses, is $38,000. You decide to go to college, probably because

Answer 1

Step-by-step explanation:

The concept involved here is opportunity cost. Opportunity cost is the loss one incurs by choosing the best alternative for himself.

The student would choose to go to college because he believes that the opportunity cost ( 24000+38000) is less important to him than going to college(best alternative). Completing college would earn him a degree that could fetch him a better paid job than his current job.