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The opportunity cost of going to college refers to the amount of money the person would have potentially earned during that time period. If the person would have worked and earned $40,000 per year for four years while attending college, their opportunity cost is $160,000. Some economists also add the cost of paying tuition into their total figure.
The money spent on tuition could've been invested in stocks or bonds.
Time spent on schoolwork takes away from the chance to earn money at a job.
Opportunity cost is a choice between two possible options where the benefits of one choice over another can be judged. This, for college, is basically saying is this education worth the large amount of money needed to get it?
What else can I help you with?
Does an opportunity cost have value?
opportunity cost can have a value, especially if you are looking at such things as the college/job thing. If you go to college rather than take a job, your opportunity cost is the amount of money you lose from not working at the job. Opportunity cost does not always have to have a value. Again with the college/job example, if you take a job rather than go to college, your opportunity cost can be things like more education and college memories, etc. Opportunity cost is simply "what you give up". Therefore, if you are giving up money, your opportunity cost has a monetary value. If you are giving up education or experience or the like, your opportunity cost technically has no monetary value, but you are still giving something up. Hope that answers the question.
How would you calculate the opportunity cost of your college education if you lived at home and went to college full time for four years?
employment opportunity time consuming
What is the Opportunity cost of a particular good?
The opportunity cost of a certain good is the cost of the next best good that you are forgoing. It is NOT a sum of all the other possibilities. It is just the cost of the next best alternative. For example: The opportunity cost of going to college is the money that you could have earned in a job. Say you spend $80,000 to go to college for four years, but if you had gotten a job right out of high school, you could have made $15,000 a year. The opportunity cost of attending college is the $60,000 you would have earned if you had gotten the job right out of high school.
Define and explain the concept of opportunity cost by giving suitable examples?
Opportunity Cost is the value of the time lost due to a decision one makes. For example, when Lebron James was in High School, he was faced with this decision: Do I skip college and go straight to the NBA? Or do I just go to college and get drafted to the NBA later? Here, Lebron made a good decision (in terms of money at least), to skip college and go straight to the NBA. If he had not, and decided to go to college, his opportunity cost for that decision would have been the $90 million so odd endorsement contract from Nike, as well as the value (for the duration that he would spend in college) of his Cleveland Cavaliers contract. In other words, Lebron's opportunity cost if he had stayed in college would be the money he would have missed out on by staying in college.
What do economists the next best alternative that had to be given up for the one chosen?
opportunity cost
What is your opportunity cost of going to college?
The main opportunity costs for going to college are time and money. However, there are also cases where someone may lose the opportunity to start a business or launch a product. If they wait, it may be too late and the opportunity completely lost.
Why do opportunity cost increase as society produces more of a good?
Because when one produces one product, the opportunity cost of the other product increases. The concave represents the increasing opportunity cost with the production of a good.
How can one determine opportunity cost from a graph?
To determine opportunity cost from a graph, you can look at the slope of the graph. The opportunity cost is represented by the ratio of the units of one good that must be given up to produce more units of another good. The steeper the slope of the graph, the higher the opportunity cost.
What is one country of comparative advantage in the production of a certain good?
It has a lower opportunity cost for production of that good.
How can one determine the opportunity cost from a graph?
To determine the opportunity cost from a graph, you can look at the slope of the graph's line. The opportunity cost is represented by the ratio of the units of one good that must be given up to produce more units of another good. The steeper the slope of the graph, the higher the opportunity cost.
What is opportunity cost and opportunity benefit?
Opportunity cost is the cost that an opportunity presents. The opportunity benefit is the benefit of the opportunity that is being presented.
How does cost different from opportunity?
"cost" represents the money paid for something and "opportunity cost" is the value of the thing given up when one chooses something else.
