Answer the Question. -You Have a Choice Between Going to an In-State College

question 90

Multiple Choice

Answer the question.
-You have a choice between going to an in-state college where you would pay $6000 per year for tuition and an out-of-state college where the tuition is $12,000 per year. The cost of living is higher
At the in-state college, where you can expect to pay $1000 per month in rent, compared to $600 per
Month at the other college. You will pay $2000 per year to travel back and forth from the
Out-of-state college. Assuming all other factors are equal, which is the less expensive choice on an
Annual basis? Find the cost of each college for one year.

• A)In-state $18,300, out-of-state $19,200
• B)In-state $18,300, out-of-state $21,200
• C)In-state $18,000, out-of-state $19,200
• D)In-state $18,000, out-of-state $21,200

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Definitions:

Demand Decreases

A situation where the quantity of a product or service that consumers are willing to buy at a given price drops, often due to changes in preferences, income, or substitutes.

Industry Exit

The process or act of businesses leaving a particular market or industry, often due to unfavorable conditions or better opportunities elsewhere.

Long-Run Equilibrium

A state in a market where all factors of production are fully utilized, leading to a situation where supply equals demand, with no external pressures to change.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, representing true profitability.