Suppose your college institutes a new policy requiring you to pay for a permit to park your car in a campus parking lot.
A)The cost of the parking permit is not part of the opportunity cost of attending college if you would not have to pay for parking otherwise.
B)The cost of the parking permit is part of the opportunity cost of attending college if you would not have to pay for parking otherwise.
C)Only half of the cost of the parking permit is part of the opportunity cost of attending college.
D)The cost of the parking permit is not part of the opportunity cost of attending college under any circumstances.

Question

Quizplus · Accepted Answer

The cost of the parking permit is part of the opportunity cost of attending college if it represents an additional expense that you would not incur if you did not attend the college. Opportunity cost includes all costs associated with an action, including any new expenses that arise as a direct consequence of that action.

Suppose Your College Institutes a New Policy Requiring You to Pay