If your tuition is $20,000 this semester, your books cost $2,000, you can only work 10 rather than 40 hours per week during the 15 weeks you are taking classes and you make $15 per hour, and your room and board is $8,000 this semester (same as if not attending college) , then your opportunity cost of attending college this semester is

A) $22,000.
B) $22,150.
C) $28,750.
D) $36,750.

Question

Jamieson Siburt · Accepted Answer

Final Answer : C, Explanation :  The opportunity cost of attending college includes the tuition ($20,000), the cost of books ($2,000), and the lost income from working fewer hours. Normally, you would work 40 hours per week, but while attending college, you can only work 10 hours per week. This results in 30 fewer hours worked per week. Over 15 weeks, this is 450 hours not worked. At $15 per hour, this equals $6,750 in lost income. Adding these costs together: $20,000 (tuition) + $2,000 (books) + $6,750 (lost income) = $28,750. Room and board costs are not included in the calculation because they are the same whether or not you attend college.

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