Suppose your expenses for this term are as follows: tuition: $5,000,room and board: $3,000,books and other educational supplies: $500.Further,during the term,you can only work part-time and earn $4,000 instead of your full-time salary of $10,000.What is the opportunity cost of going to college this term,assuming that your room and board expenses would be the same even if you did not go to college?
A)$5,500
B)$8,500
C)$11,500
D)$14,500

Question

Quizplus · Accepted Answer

The opportunity cost includes the tuition and books ($5,500) plus the lost income ($6,000, which is the difference between the full-time salary of $10,000 and the part-time earnings of $4,000), totaling $11,500. Room and board are not included since those expenses would remain the same whether or not you attend college.

Suppose Your Expenses for This Term Are as Follows: Tuition