Question

Costs and Opportunity Costs • You are deciding whether to attend LU, and you figure the cost to be.. Tuition: $5,000 Books and school supplies: 1,000 Room and board: 10,000 Transportation: 4,000 Miscellaneous expenses: 3,000 • Total money cost: $23,000 This gives you the cost of one year at LU, but in order to decide if you should go. Let's look at the Opportunity Cost

Answer 1

Opportunity cost refers to the value of the next best alternative use of the resource.

The present case is about making comparison about whether to join a full time residential program or to go for online learning program. In second case expenses like room and board are not mentioned because you are not going to campus premises and will not have to pay for room and board charges which are paid under normal residential program. Transportation charges are not to be paid because you have to study at home using a laptop and do not have to commute to the location of university premises. There are no entertainment expenses like campus outings, picnic or any other visit as they are applicable only for regular residential programs. There are no miscellaneous expenses which include expenses like building funds, sports funds or in house meal charges as in online system you are not utilizing any of these facilities.