Germaine plans to attend college next year. Tuition costs $3,000, books cost $600, and residence fees cost $4,000. She currently earns $24,000 a year working at Chapters but would have to quit work. Germaine's opportunity cost of attending college is $24,000.

Question

Quizplus · Accepted Answer

The opportunity cost is the value of the next best alternative that is forgone in order to pursue a certain action. In this case, Germaine's opportunity cost of attending college would be the amount of money she could have earned if she had continued to work instead of attending college, which is $24,000.

Germaine Plans to Attend College Next Year