Jamie and Danny both attend the same college and incur the same expenses for tuition, books, and school supplies. Jamie gave up a lucrative job modeling in Paris to attend school full-time, and Danny gave up a part-time job as a sales clerk in a department store. It follows that:
A)the opportunity cost of attending college is the same for both since they are enrolled at the same academic institution.
B)the opportunity cost of attending college is likely greater for Jamie than for Danny.
C)the opportunity cost of attending college is likely greater for Danny than for Jamie.
D)the opportunity cost is minimal for both, since, on average, college graduates are paid much higher than high school graduates.
E)the opportunity cost of attending college for both Jamie and Danny is equal to zero.

Question

Quizplus · Accepted Answer

The opportunity cost of attending college is the value of the next best alternative that is forgone in order to attend college. In this case, Jamie gave up a lucrative job modeling in Paris, which is likely a higher opportunity cost than Danny giving up a part-time job as a sales clerk in a department store. Therefore, the opportunity cost of attending college is likely greater for Jamie than for Danny.

Jamie and Danny Both Attend the Same College and Incur