Suppose you have a choice of working full-time during the summer or going full-time to summer school.Summer tuition and books are $2, 200.If you worked, you could make $7, 000.Your rent is $1, 000 for the summer, regardless of your choice.The opportunity cost of going to summer school is, therefore,
A)$2, 200
B)$7, 000
C)$8, 000
D)$9, 200
E)$10, 200

Question

Quizplus · Accepted Answer

The opportunity cost of going to summer school includes the $7,000 you forego by not working and the $2,200 you spend on tuition and books, totaling $9,200. Rent is not included as it is a cost incurred regardless of the choice.

Suppose You Have a Choice of Working Full-Time During the Summer