During the summer you have made the decision to attend summer school, which prevents you from working at your usual summer job in which you normally earn $6,000 for the summer. Your tuition cost is $3,000 and books and supplies cost $1,300. In terms of dollars, the opportunity cost of attending summer school is
A) $10,300.
B) $6,000.
C) $4,300.
D) $3,300.

Question

Quizplus · Accepted Answer

The opportunity cost includes both the explicit costs ($3,000 for tuition and $1,300 for books and supplies, totaling $4,300) and the implicit cost of the foregone income ($6,000 from not working the summer job). Adding these together gives $10,300 as the total opportunity cost of attending summer school.

During the Summer You Have Made the Decision to Attend