The tuition fee that will be paid next semester by a college student who pursues a degree is a(n):
A)sunk cost.
B)out-of-pocket cost.
C)indirect cost.
D)average cost.
E)marginal cost.

Question

Quizplus · Accepted Answer

The tuition fee is an out-of-pocket cost, which is a cost that requires a direct payment or expenditure. It is not a sunk cost because it is a future cost that can be avoided if the student decides not to pursue a degree or transfers to a different college. It is also not an indirect cost, which refers to expenses that cannot be traced back to a particular product or service. Average cost and marginal cost are not relevant in this context.

The Tuition Fee That Will Be Paid Next Semester by a College