Like a good economist, you calculated the opportunity cost of getting your college degree. Suppose that at your university, you will pay $15,000 each year for tuition, $3,000 each year for textbooks, and $8,000 per year for room and board. Before you left for college, your boss at your high-school job offered you a job paying $15,000 per year. Assume that if you decided not to go to college, your parents would not let you live at home. What is your opportunity cost for four years of college? $____
Like a good economist, you calculated the
Assume that if you decided not to go to college, your parents would not let you live at home.
What is your opportunity cost for four years of college? $____
Opportunity cost is the cost which the person has to bear because of making a choice.
It includes the income foregone and the additional cost he has to make as he makes the particular choice.
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