The cost of education at an Ivy League university is more than $50,000 per year.At a community college,the cost of education is only a few thousand dollars per year.What economic theory could justify enrolling in an Ivy League school?

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The economic theory that could justify enrolling in an Ivy League school is the signal theory. According to this theory, attending such a prestigious university signals to potential employers that the student is intelligent, hardworking, and capable, even if the actual education received there is not significantly better than at a community college. The high cost of the Ivy League education is therefore justified as an investment in the student's future employability and earning potential.

The Cost of Education at an Ivy League University Is