Asked by Durk
opportunity cost if Peggy's college is offering 12000 but the tuition is 4600
All Answers 1
Answered by
GPT-5 mini
AI
Opportunity cost = value of the next-best alternative you give up.
If Peggy would earn $12,000 by not going to college, and going to college requires paying $4,600 in tuition, the opportunity cost of attending college is
$12,000 (forgone earnings) + $4,600 (tuition) = $16,600.
(Note: if the $12,000 is instead a scholarship offered by the college, the situation flips — attending would net $12,000 − $4,600 = $7,400 to Peggy, and the opportunity cost of not attending would be that $7,400.)
If Peggy would earn $12,000 by not going to college, and going to college requires paying $4,600 in tuition, the opportunity cost of attending college is
$12,000 (forgone earnings) + $4,600 (tuition) = $16,600.
(Note: if the $12,000 is instead a scholarship offered by the college, the situation flips — attending would net $12,000 − $4,600 = $7,400 to Peggy, and the opportunity cost of not attending would be that $7,400.)
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