When making your decision to attend college you had to weigh both the short term and...

When making your decision to attend college you had to weigh both the short term and long term expected benefits against and short and long term expected costs. That is, you undertook benefit/cost analysis and obviously decided that the benefits outweigh the costs — at least in the long run. When estimating the costs of attending college most people think of tuition, fees, books, room, and board, etc… However, to get a full measure of all the costs of a decision one needs to also consider the opportunity costs. What are some opportunity costs of attending college? What is the opportunity cost of attending college full time? Explain.

Expert Solution

Opportunity cost is the cost of the next best alternative foregone. Suppose you decide not to go to college after graduating high school. Then you will most likely look for a job instead. The salary that this job pays will be your opportunity cost of attending college. For example, you have 3 jobs you can choose from- one offers a salary of $25k p.a, another offers $20k p.a and the third offers $30k p.a. Now, if you decide to go to college, you can't take any of these jobs. However, your opportunity cost of going to college will not be the sum of all 3 salaries (25k + 20k + 30k); it will just be $30k. Always keep in mind that opportunity cost is the value of next best alternative, so it will always be value of the highest paying job that you forego if you decide to attend college. Hence, in this example, it will be $30k.

Similarly, opportunity cost of attending college full time will be the highest salary offering full time job that is foregone by going to college.

Rahul Sunny answered 1 year ago

1. Describe an example of a decision you've made when you had to weigh the marginal...

1. Describe an example of a decision you've made when you had to weigh the marginal cost and marginal benefit of the choice.

Jake Chemicals – Short-Term Decision Making “If these new products are to be competitively priced, we...

Jake Chemicals – Short-Term Decision Making “If these new products are to be competitively priced, we have got to do something about our container costs” said Mr. Walsh. Walsh is the general manager of Jake Chemicals which manufactured and sold a range of high-grade chemical products. These products required careful packing and the company made a special feature of the properties of the containers used. They used patented lining made from a material known as GHL, and the firm operated...

Josh is not sure if he should attend college or not. Part of his decision will...

Josh is not sure if he should attend college or not. Part of his decision will be based on the return on investment of college. He estimates that the per year cost to attend Texas Tech including room and board is $27,750. He also assumes the cost will rise by 5.5% per year. How much is a 4-year degree going to cost Josh?

When making the decision to select Whole Life, Universal Life, Term or Variable Life Insurance, you...

When making the decision to select Whole Life, Universal Life, Term or Variable Life Insurance, you must consider cost, risk and personal family circumstances. 1, Make a positive case and a negative case for each type of policy above and identify at what age you might consider each. If you feel you are too young to take out insurance at this time, or you have no responsibilities to anyone or you feel you have no worth........ I will assume that...

Short term decision making Shot plc manufactures three types of furniture products - chairs, stools and...

Short term decision making Shot plc manufactures three types of furniture products - chairs, stools and tables. The budgeted unit cost and resource requirements of each of these items are detailed below: Chair Stools Table ($) ($) ($) Timber cost 5.00 15.00 10.00 Direct labour cost 4.00 10.00 8.00 Variable overhead cost 3.00 7.50 6.00 Fixed overhead cost 4.50 11.25 9.00 16.50...

What do you believe would be the short- and long-term effects of your policies on both...

What do you believe would be the short- and long-term effects of your policies on both inflation and unemployment rates? Applying the principles of the Keynesian model

why adhering to the professional ethical standards/codes is challenging for businesses when making short-term and/or long-term...

why adhering to the professional ethical standards/codes is challenging for businesses when making short-term and/or long-term decisions, and what benefits do businesses derive for strictly adhering to the professional ethical standards/codes? Explain your answer with an example

what external factors will you consider when making a decision

Decision Making: Discuss how relevant information is used to make short-term decisions and how pricing affects...

Decision Making: Discuss how relevant information is used to make short-term decisions and how pricing affects short-term decisions. Explain the concept of capital budgeting and detail the capital budgeting techniques used to make decisions. This includes, the payback method, the accounting rate of return method, and the discounted cash flow method.

Now that you have completed your decision matrix, you will discuss your decision-making process and how...

Now that you have completed your decision matrix, you will discuss your decision-making process and how you have used the matrix. For this discussion, you should NOT post your matrix but rather use it as a tool to evaluate your business. In your initial post, address the following: Explain how you could use the matrix in a different business/technology scenario. Give an example. What was the most challenging part of applying this matrix to the final project? What recommendations would...

Question