Calculate the opportunity cost of an increase in the number ofhours spent studyi

Question

Calculate the opportunity cost of an increase in the number ofhours spent studying in order to earn a 3.0 GPA rather than a 2.0GPA. Total Hours   HrsStudying   GPA   HrsWrking   Income 60                     60                  4.0         0              $0 60                     40                  3.0         20            $100 60                     30                  2.0         30            $150 60                     10                  1.0         50            $250    60                     0                  0.0         60            $300 Calculate the opportunity cost of an increase in the number ofhours spent studying in order to earn a 3.0 GPA rather than a 2.0GPA. Total Hours   HrsStudying   GPA   HrsWrking   Income 60                     60                  4.0         0              $0 60                     40                  3.0         20            $100 60                     30                  2.0         30            $150 60                     10                  1.0         50            $250    60                     0                  0.0         60            $300

Explanation / Answer

At a 2.0 GPA The student isstudying for 30 hours and spends 30 hours working to earn $150 thewage can be calculated as 150/30 to get $5 perhour To get a 3.0 GPA the studentneeds to study for 40 hours leaving only 20 hours to work. Theopportunity cost of the 3.0 GPA is the 10 hours the student couldbe using to work instead of study. 10 hours * wage(5) = $50 whichis the monetary value of the opportunity

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