Jamie and Danny both attend the same college and incur the same expenses for tuition, books, and school supplies. Jamie gave up a lucrative modeling job in Paris to attend school full time and Danny gave up a part-time job as a sales clerk in a department store. Which of the following statements about opportunity cost is the most accurate?
A) The opportunity cost of attending college is likely greater for Danny than for Jamie.
B) The opportunity cost is miniscule for both since college graduates are paid much higher than high school graduates on average.
C) The opportunity cost of attending college is the same for both since they are enrolled at the same academic institution.
D) The opportunity cost of attending college is likely greater for Jamie than for Danny.

Question

Quizplus · Accepted Answer

Opportunity cost refers to the cost of foregoing an alternative option. In this case, Jamie gave up a lucrative modeling job in Paris, which likely would have had a higher potential income than a part-time sales clerk job. On the other hand, Danny only gave up a part-time job as a sales clerk, which may have had a lower potential income than the modeling job. Therefore, the opportunity cost of attending college is likely greater for Jamie than for Danny.

Jamie and Danny Both Attend the Same College and Incur