18-1
Opportunity Cost of an Additional Year of School
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 |