dinah quits her administrative job, which pays $50,000 a year, to finish her four - year college degree. her…

dinah quits her administrative job, which pays $50,000 a year, to finish her four - year college degree. her annual college expenses are $11,000 for tuition, $1,900 for books, and $2,500 for food. the opportunity cost of attending college for the year is $: 65,400. 15,400. 12,900. 62,900.

dinah quits her administrative job, which pays $50,000 a year, to finish her four - year college degree. her annual college expenses are $11,000 for tuition, $1,900 for books, and $2,500 for food. the opportunity cost of attending college for the year is $: 65,400. 15,400. 12,900. 62,900.

Answer

Explanation:

Step1: Identify explicit costs

Explicit costs are out - of - pocket expenses. Tuition ($11,000) and books ($1,900) are explicit costs. Food is not a cost of going to college as she would eat regardless, so we ignore it. Explicit costs = $11000 + 1900=12900$.

Step2: Identify implicit costs

Implicit cost is the income forgone. She gives up a $50,000 - a - year job. Implicit cost = $50000$.

Step3: Calculate opportunity cost

Opportunity cost is the sum of explicit and implicit costs. Opportunity cost=$12900 + 50000 = 62900$.

Answer:

62,900