uppose it is October 1. You have paid $15,000 in tuition and have been attending college classes. However, you are offered a full-time job paying $20,000 for the next two months. If you take the job, you'll have to stop attending classes and withdraw from college for the semester. Unfortunately, at this point in the semester, tuition is no longer refundable. You must decide whether to remain enrolled in college. What is the relevant cost of staying in school? When deciding whether to remain in school, the relevant cost of staying in school is $nothing.
uppose it is October 1. You have paid $15,000 in tuition and have been attending college classes. However, you are offered a full-time job paying $20,000 for the next two months. If you take the job, you'll have to stop attending classes and withdraw from college for the semester. Unfortunately, at this point in the semester, tuition is no longer refundable. You must decide whether to remain enrolled in college. What is the relevant cost of staying in school? When deciding whether to remain in school, the relevant cost of staying in school is $nothing.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Concept: Ignore Sunk Costs 2
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Suppose it is October 1. You have paid
$15,000
in tuition and have been attending college classes. However, you are offered a full-time job paying
$20,000
for the next two months. If you take the job, you'll have to stop attending classes and withdraw from college for the semester. Unfortunately, at this point in the semester, tuition is no longer refundable.You must decide whether to remain enrolled in college. What is the relevant cost of staying in school?
When deciding whether to remain in school, the relevant cost of staying in school is
$nothing.
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