Upon graduating from high school Carmen has a job offer, and the job would provide her with $20,000 in income for the coming year.She has also been accepted to Isaac and Avery College.Tuition for the coming year at the College is $15,000, room and board is $10,000, and she expects that books will cost $2,000.What is the opportunity cost of attending Isaac & Avery College?

Question

Quizplus · Accepted Answer

The opportunity cost of attending Isaac & Avery College includes the foregone income of $20,000 from the job offer plus the costs of tuition, room and board, and books, which total $15,000 + $10,000 + $2,000 = $27,000. Adding these together, the total opportunity cost is $20,000 + $27,000 = $47,000.

Upon Graduating from High School Carmen Has a Job Offer