Susan Sneed gave up her $55,000 job at ACC, Inc. to return to college to change careers. She reduced her wardrobe to cheaper jeans and t-shirts, paid $5,000 in tuition, continued to make her family's $1,200 per month home mortgage payments, and bore the burden of a variety of inane comments about the stupidity of older students giving up good paying jobs to return to school. Which of the above items is not needed to determine the opportunity cost of her return to college?

Question

Quizplus · Accepted Answer

The mortgage expense is not needed to determine the opportunity cost because it is a fixed cost that she would incur regardless of her decision to return to college.

Susan Sneed Gave Up Her $55,000 Job at ACC, Inc