During the summer you have made the decision to attend summer school, which prevents you from working at your usual summer job in which you normally earn $7,000 for the summer

Business Dec 28, 2020

During the summer you have made the decision to attend summer school, which prevents you from working at your usual summer job in which you normally earn $7,000 for the summer. Your tuition cost is $3,000 and books and course supplies $1,500. In terms of dollars, the opportunity cost of attending summer school is:

a) $7,000

b) $11,500

c) $4,500

d) $10,000

Expert Solution

The correct option is a) $7,000.

Since the individual decides to attend summer school and not to take advantage of earning income by working during summer. As we all know, the opportunity cost in economics is the lost benefit by choosing another option.

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