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.If these are the only relevant costs to consider,the opportunity cost of going to summer school is:
A)$2,200.
B)$7,000.
C)$8,000.
D)$9,200.
E)$10,200.

Question

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.If these are the only relevant costs to consider,the opportunity cost of going to summer school is:​
A)$2,200.
B)$7,000.
C)$8,000.
D)$9,200.
E)$10,200.

Quizplus · Accepted Answer

The opportunity cost of going to summer school includes the tuition and books ($2,200) plus the forgone earnings from not working ($7,000), totaling $9,200. Rent is not included in the calculation since it is a sunk cost that will be incurred regardless of the choice.

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