Margo spends $30 000 on 1 year's university tuition.The opportunity cost of spending 1 year in university for Margo is:
A) $30 000.
B) whatever she would have purchased with the $30 000 instead.
C) whatever she would have earned had she not been in university.
D) whatever she would have purchased with the $30 000 plus whatever she would have earned had she not been in university.

Question

Quizplus · Accepted Answer

The opportunity cost includes both the tuition cost and the income she foregoes by attending university instead of working.

Margo Spends $30 000 on 1 Year's University Tuition