Consider Noah's decision to go to college.If he goes to college,he will spend $80,000 on tuition,$15,000 on room and board,and $4,000 on books.If he does not go to college,he will earn $22,000 working in a store and he will spend $13,000 on room and board.Noah's cost of going to college is
A)$99,000.
B)$103,000.
C)$108,000.
D)$121,000.

Question

Quizplus · Accepted Answer

The cost of going to college includes tuition, room and board, and books, minus the room and board he would pay regardless, plus the opportunity cost of not working. So, $80,000 (tuition) + $15,000 (room and board) + $4,000 (books) - $13,000 (room and board if not in college) + $22,000 (lost earnings) = $108,000.

Consider Noah's Decision to Go to College