Question

Suppose your expenses for this semester are: Tuition: $13,000 Room and board: $7,000 Books and other educational supplies: $2,000. During the semester, you can only work part-time and earn $5,000 instead of your full-time salary of $15,000. What is the opportunity cost of going to college this term, assuming that your room and board expenses would be the same even if you did not go to college? KID a) $25,000 (b) $22,000 c) $15.000 d) $32,000 accounting Information | Boundless Business - Lumen Learning * . W XR0 =09

Answer 1

Opportunity cost is one benefit foregone since another benefit is selected.
In this case you have two alternative
One is going to college and working part time	Benefit of $5000
One is working full time	Benefit of $15000
In this case if going to college is chosen then you can work part time and thus the opportunity of earning $15,000 by working full time is gone.
Thus, the opportunity cost in this case is $15,000.
Expenses under each option would remain same and thus are not considered.