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The following table lists the costs incurred by a student attending a public university for one semester.

Tuition and Fees : $4,000
Rent and Meals : $950
Books and Supplies : $750
Haircuts : $120
Lost Wages : $4,500
What is the total opportunity cost that the student incurs by attending college for one​ semester?
a. $10,320
b. $9,250
c. $4,950
d. $4,750
e. $10,200

User Zak Linder
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Final answer:

The total opportunity cost of attending college for one semester, which includes tuition and fees, rent and meals, books and supplies, haircuts, and lost wages, amounts to (a) $10,320.

Step-by-step explanation:

The question asks for the calculation of the total opportunity cost of attending college for one semester. Opportunity cost includes both the direct costs and the value of the next best alternative that is foregone, which in this case is the lost wages due to attending college. To calculate this, we will add the direct costs listed (tuition and fees, rent and meals, books and supplies, and haircuts) to the lost wages. The sum is as follows:

  • Tuition and Fees: $4,000
  • Rent and Meals: $950
  • Books and Supplies: $750
  • Haircuts: $120
  • Lost Wages: $4,500

Therefore, when we add these costs together ($4,000 + $950 + $750 + $120 + $4,500), the total opportunity cost that the student incurs is $10,320. This reflects both the monetary costs and the lost opportunity to earn wages while attending classes and studying.

User Morteza Naeimabadi
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