As a strategy to boost enrollment, in January 1996, a private college in Iowa offered free tuition for graduating high school seniors from the county where it is located.For students who accepted the offer, how did this offer affect the opportunity cost of attending college?
A)The opportunity cost did not change, since lost earnings were still a factor.
B)The opportunity cost became zero for the typical student.
C)The opportunity cost was very low, because the only cost was for books and supplies.
D)The opportunity cost did not change, since tuition was not a factor in computing opportunity cost.
E)The opportunity cost was lower than if tuition was charged, but there was still a cost.

Question

Quizplus · Accepted Answer

While the tuition cost was eliminated, there are still other costs associated with attending college, such as the cost of room and board, textbooks, and lost earnings from not working during college. Therefore, the opportunity cost was lower than if tuition was charged, but there was still a cost.

As a Strategy to Boost Enrollment, in January 1996, a Private