The Opportunity Cost of College Case Study Example | Topics and Well Written Essays - 250 words

The Opportunity Cost of College - Case Study ExampleSuppose you argon paying $6,000 this year for in-state tuition, fees, and books at a public college (paying out-of-state rates would add a nonher $6,000 to that, and attending a cloistered college would add about $15,000). The opportunity bell of paying for tuition, fees, and books is what you and your family could otherwise have purchased with that money.How about get on and board? Expenses for room and board are not necessarily an opportunity apostrophize because, even if you were not attending college, you would still need to live somewhere and eat something, though these could cost more in college. Likewise, whether or not you attended college, you would still buy goods such as CDs, clothes, and toiletries, and services such as laundry, haircuts, and DVD rentals. Your spending for such products is not an opportunity cost of attending college but the personal cost that arises regardless of what you do. So for simplicity, assu me that room, board, and personal expenses are the same whether or not you attend college. The forgone requital of $10,000 plus the $6,000 for tuition, fees, and books yield an opportunity cost of $16,000 this year for a student paying in-state rates at a public college. Opportunity cost jumps to about $22,000 for students paying out-of-state rates and to about $31,000 for those at private colleges. Scholarships, but not loans, would reduce your opportunity cost (why not loans?).This analysis assumes that other things remain constant. plainly if in your view, attending college is more of a pain than you expected your next best alternative to be, thence the opportunity cost of attending college is even higher. In other words, if you are one of those people who name college difficult, often boring, and in most ways more unpleasant than a full-time job, then the cost in money terms understates your opportunity cost.