Consider Paul's decision to go to college.If he goes to college,he will spend $90,000 on tuition,$15,000 on room and board,and $7,000 on books.If he does not go to college,he will earn $22,000 working at a construction job and he will spend $11,000 on room and board.Paul's cost of going to college is
A)$96,000.
B)$110,000.
C)$114,000.
D)$123,000.

Question

Quizplus · Accepted Answer

The cost of going to college includes the tuition, books, and the opportunity cost of not working. Tuition is $90,000, books are $7,000, and the opportunity cost is the $22,000 he would earn minus the $11,000 he would spend on room and board if not in college. So, $90,000 + $7,000 + ($22,000 - $11,000) = $123,000.

Consider Paul's Decision to Go to College