Suppose you have a choice of working full-time during the summer or going full-time to summer school. Summer tuition and books are $2,200. If you worked, you could make $7,000. Your rent is $1,000 for the summer, regardless of your choice. The opportunity cost of going to summer school is, therefore,

A. $7,000

B. $10,200

C. $8,000

D. $9,200

E. $2,200

Question

Business

Chapman

10 February, 23:25

Suppose you have a choice of working full-time during the summer or going full-time to summer school. Summer tuition and books are $2,200. If you worked, you could make $7,000. Your rent is $1,000 for the summer, regardless of your choice. The opportunity cost of going to summer school is, therefore,

A. $7,000

B. $10,200

C. $8,000

D. $9,200

E. $2,200

+3

Answers (1)

Know the Answer?

Xavier Benitez · Answer 1

D. $9,200

Explanation:

The computation of the opportunity cost of going to summer school is shown below:

= Summer tuition and books + earning while working

= $2,200 + $7,000

= $9,200

In order to find out the opportunity cost, we added the summer tuition and books and the earning which come from working

While the other information given is immaterial in the question. Therefore, ignored it