Suppose you currently earn $40,000 a year. You are considering a job that will increase your lifetime earnings by $400,000 but that requires an MBA. The job will mean also attending business school full time for two years at an annual cost of $50,000. You already have a bachelor’s degree, for which you spent $150,000 in tuition.Which of the above information is relevant to your decision on whether to take the job?What is the opportunity cost of going to school to study MBA?Should you take the job? [Note: You will need to get the MBA]

Given, Current earning- $40000 Earning after MBA- $400,000 Annual cost- $50000 Tuition fee-…

Answered: Suppose you currently earn $40,000 a…

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Suppose you currently earn $40,000 a year. You are considering a job that will increase your lifetime earnings by $400,000 but that requires an MBA. The job will mean also attending business school full time for two years at an annual cost of $50,000. You already have a bachelor’s degree, for which you spent $150,000 in tuition.
1. Which of the above information is relevant to your decision on whether to take the job?
2. What is the opportunity cost of going to school to study MBA?
3. Should you take the job? [Note: You will need to get the MBA]