Larry was accepted at three different graduate schools, and must choose one. Elite U costs $50,000 per year and did not offer Larry any financial aid. Larry values attending Elite U at $60,000 per year. State College costs $30,000 per year, and offered Larry an annual $10,000 scholarship. Larry values attending State College at $40,000 per year. NoName U costs $20,000 per year, and offered Larry a full $20,000 annual scholarship. Larry values attending NoName at $15,000 per year. Larry has decided to go to Elite U. Assuming that all of the values described are correct, for Larry to decide on Elite U, he must have:

Question

Quizplus · Accepted Answer

Larry miscalculated the surplus of attending Elite U. According to the information provided, Larry's value for attending Elite U is only $60,000 per year, while it will cost him $50,000 per year. This means his surplus is only $10,000 per year, which is lower than the surplus he would receive from attending State College or NoName U. Therefore, Larry should have chosen either State College or NoName U.

Larry Was Accepted at Three Different Graduate Schools, and Must