Larry Was Accepted at Three Different Graduate Schools, and Must

question 115

Multiple Choice

Larry was accepted at three different graduate schools, and must choose one. Elite U costs $50,000 per year and did not offer Larry any financial aid. Larry values attending Elite U at $60,000 per year. State College costs $30,000 per year, and offered Larry an annual $10,000 scholarship. Larry values attending State College at $40,000 per year. No Name U costs $20,000 per year, and offered Larry a full $20,000 annual scholarship. Larry values attending NoName at $15,000 per year. The opportunity cost of attending Elite U is:

• A) $50,000
• B) $10,000
• C) $20,000
• D) $15,000

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Definitions:

Restrictive Covenant

A clause in a deed or lease that limits what the owner of the land or property can do with it.

Breach of Contract

Occurs when one party in a contractual agreement fails to fulfill their obligations as specified in the contract, entitling the other party to legal remedies.

Injunction

A court order requiring an individual or entity to do or cease doing a specific action.

Specific Performance

A legal remedy requiring a party to fulfill their obligations under a contract, as opposed to simply paying damages.