Jane Is Deciding Whether to Go to School for 8

question 357

Essay

Jane is deciding whether to go to school for 8 weeks this summer. The cost of tuition and textbooks is $1,700 and housing and other expenses will cost her $600. If she does not go to school, she will live in her parents' house for free and they will cover her food and other expenses for her. Also, if Jane does not go to summer school she could work fulltime. But the best job she can get pays only $600 per week, and Jane would only agree to give up her free time for no less than $750 per week. However, if she goes to summer school, she'll have to spend 40 hours a week attending classes and studying.
a) What will the summer school cost Jane in terms of money spent?
b) What are the opportunity costs of going to summer school that Jane does not pay explicitly? Explain.
c) What is Jane's total opportunity cost of going to school this summer? Explain your answer.
d) Suppose that if Jane does not go to summer school, she will eventually take the classes anyway. What is Jane's marginal benefit of going to summer school?
e) Suppose Jane decides to go to school in the summer. Explain her decision using the concepts of marginal cost and marginal benefit.

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Definitions:

Persuasive

Designed or intended to convince or influence someone's opinion or behavior through argument, reasoning, or appeal.

Abstract Ideas

are concepts that exist purely in thought, without a physical or concrete existence, emphasizing general qualities over specifics.

Concrete Ideas

Specific, tangible concepts or plans that are clear and straightforward, lacking in abstraction.

Elements of Argument

The fundamental components that make up a logical argument, including claims, evidence, and reasoning.