Prior to attending college,Marvin is offered a lucrative four-year contract as an actor on a daytime soap opera.Assuming that acting and attending college are Marvin's preferred alternatives and that he must choose between these two options,his opportunity cost of attending college after receiving the offer on the soap opera ________________,making him ____________ likely to attend college than before he received the offer.
A) increases; less
B) decreases; more
C) stays the same; equally likely
D) increases; more
E) decreases; less

Question

Quizplus · Accepted Answer

The opportunity cost of attending college increases because Marvin has to give up the lucrative earnings from the soap opera contract. This makes him less likely to attend college, as the cost (foregone earnings) of attending is now higher.

Prior to Attending College,Marvin Is Offered a Lucrative Four-Year Contract