Suppose you plan to take summer courses. The cost of tuition and textbooks is $1,200, housing will cost you $400, and you'll spend $300 on food. If you decide not to take courses in the summer, you'll live in your parents' house for free and spend only $100 on food. Also, if you don't take courses in the summer, you'll work full time and could earn at least $5,000. You can still work part time while taking courses, but the most you can earn is $1,000. What is your opportunity cost of taking courses in the summer?

Question

Quizplus · Accepted Answer

The opportunity cost of taking courses includes the tuition, textbooks, housing, and food costs, plus the foregone earnings from not working full time. This totals $1,200 (tuition and textbooks) + $400 (housing) + $300 (food) + $5,000 (foregone earnings) - $1,000 (part-time earnings) - $100 (food savings) = $5,800.

Suppose You Plan to Take Summer Courses