Suppose you plan to go to school this summer. The cost of tuition and textbooks

Question

Suppose you plan to go to school this summer. The cost of tuition and textbooks is $1,000 and housing, board, and entertainment will cost you $550. If you didn't go to school, you'd live in your parents' house for free, but your other living expenses would be about the same. Also, if you didn't go to school you'd work full time and could earn $8,000. You can still work part-time while attending the summer school, but you will earn only $3,000.

A.) How much is the opportunity cost of going to summer school that you don't pay explicitly?

B.) What is your total opportunity costs of going to school this summer?

Explanation / Answer

Explicit Costs=1000+550=1550

Total Oppurtunity Cost=Explicit Cost+Implicit Cost=1550+(8000-3000)=6550

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.