Margo spends $30,000 on one year's college tuition. The opportunity cost of spending one year in college for Margo is:

A. whatever she would have earned had she not been in college.
B. whatever she would have purchased with the $30,000 instead.
C. whatever she would have purchased with the $30,000 plus
D. whatever she would have earned had she not been in college. $30,000.

Purchases she could have made with $30,000 plus the earnings foregone

Explanation:

Opportunity cost refers to the benefit obtained from the next best alternative.

Here, the opportunity cost of spending a year in the college is the purchases worth of $30,000 that she would have do it and the money income that she would have earned it.

Opportunity cost can be represented in terms of monetary and non monetary.

disadvantages of leasing a vehicle: no vehicle equity and mileage limitations

disadvantages of purchasing a vehicle: large down payment and vehicle depreciation

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