You plan to attend college. Answer the following questions: a. What are the explicit (cash out...

You plan to attend college. Answer the following questions: a. What are the explicit (cash out of pocket) costs of attending college? What are the implicit (lost opportunities) of attending college. b. You will not have any current rock stars or major league ball players attending your classes. Why not? c. Assuming everyone has equal intelligence, college will still not be the right choice for everyone. Using the concept of opportunity costs, explain why.

Expert Solution

a. The explicit cost of attending college include tuition fees, hostel fees, mess charges, cost of books and stationary etc. These are the accounting cost of attending college.The implicit cost of attending college include the salary which could have been earned if the person started working rather than pursuing higher education.

b. This is because their opportunity cost of attending college is high because of the time they can spent training themselves for the event and also the money earned in the event. In their career, education does not create any value addition rather it is their practice and training which helps them in value addition.

c.People for whom the opportunity cost of attending college is high will prefer not to attend the college because they can use their time in other activity. On the other hand, people for whom the opportunity cost of attending college is low and education will add value to their career, will prefer attending college.

Rahul Sunny answered 1 year ago

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