Upon graduating from high school you have a job offer which would provide you with $20,000 in income for the coming year. You have also been accepted to Isaac and Avery college. Tuition for the coming year at I&A college is $15,000, room and board is $10,000 and you expect that books will cost you $2,000. What is the opportunity cost of attending I&A college?

Question

Quizplus · Accepted Answer

The opportunity cost of attending I&A college is the income you would have earned if you had not attended college. In this case, the opportunity cost is $20,000, which is the amount you would have earned if you had taken the job offer.

Upon Graduating from High School You Have a Job Offer