18-2
Ashley’s Economic Profit from Acquiring a Teaching Degree

Table 18.2: Ashley’s Economic Profit from Acquiring a Teaching Degree
Value of increase in lifetime earnings$100,000
Explicit cost: 
   Tuition−40,000
   Interest paid on student loan−4,000
Accounting Profit56,000
Implicit cost: 
   Income forgone during 2 years spent in school−57,000
Economic Profit−1,000