If I have to drop out of college, it will cost me all of the tuition I have paid and the income I could have earned during those years while I was in college. True or false.

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Business

Elsie Haynes

1 April, 06:28

If I have to drop out of college, it will cost me all of the tuition I have paid and the income I could have earned during those years while I was in college. True or false.

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Nadia Hammond · Answer 1

True

Explanation:

Opportunity cost refers to the benefits foregone of a non chosen alternative when an alternative is chosen.

Going to college represents opportunity cost in the form of money incurred specifically for pursuing studies and also the lost opportunity in the form of income foregone which could've been earned had the student worked somewhere.

Thus, dropping out of college would involve the opportunity cost in the form of money spent exclusively for study as well as the money which could've been earned had the individual preferred working.

Hence, the given statement is true.