Question

9. Gallagher is planning on
going to college in a few
months. The tuition is
$10,000 a year. Assuming
that Gallagher goes to
college for four years,
is the opportunity cost
of his attending college
$40,000? Why or why
not?

Answer 1

Answer:

$40000 is the opportunity cost to attend college.

Explanation:

The opportunity cost is something that a person loses in order to acquire the other thing. In the given case total tuition fees of 4 years are $40000. Moreover, Gallagher has two options. First, he can forgive the idea to go to college and save $40000. Secondly, he can go to college and lose $40000. Let us assume Gallagher attends the college. If he attends college then he has to lose $40000. Thus, this $40000 is the opportunity cost to attend college.

Answer 2

The opportunity cost to attend college should be $40,000.

What is the opportunity cost?

It is the cost that where the person should sacrifice one thing to obtain the other thing. Since the total tuition fees for 4 years should be $40,000 also the person have two options. The first option is that he don't to go to college and save $40,000 and the second option should be to go to college.

So here we conclude that The opportunity cost to attend college should be $40,000.

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