Calculate the opportunity cost of one extra year of college if tuition,room and board fees,and spending money are $25,000,and the estimated salary upon graduation is $50,000.

Question

Quizplus · Accepted Answer

The opportunity cost of one extra year of college includes not only the direct costs of attending college (tuition, room and board, and spending money) which total $25,000, but also the forgone salary of $50,000 that could have been earned if not in college. Adding these together gives an opportunity cost of $75,000.

Calculate the Opportunity Cost of One Extra Year of College