9-1
Opportunity Cost of an Additional Year of School
TABLE
Explicit cost | Implicit cost | ||
|---|---|---|---|
Tuition | $7,000 | Forgone salary | $35,000 |
Books and supplies | 1,000 |
|
|
Computer | 1,500 |
|
|
Total explicit cost | 9,500 | Total implicit cost | 35,000 |
Total opportunity cost = Total explicit cost + Total implicit cost = $44,500 | |||