A Student Who Has Paid Non-Refundable Tuition of $45 a Lecture

question 84

Multiple Choice

A student who has paid non-refundable tuition of $45 a lecture estimates the marginal benefit of each lecture to be $60.She should attend the class if

• A) the tuition for other classes is less than $60.
• B) the opportunity cost of attending class is $50.
• C) the opportunity cost of teaching the class is $70.
• D) the tuition is less than the marginal benefit.
• E) the opportunity cost of attending class is $65.

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Definitions:

Present Values

The current value of a future sum of money or stream of cash flows, discounted at a specific rate to account for its time value of money.

New Technology

The latest advancements and innovations in methods, tools, or devices that improve efficiency, productivity, or performance in various fields.

Patent Scarcity

Refers to the situation where there is a lack of available patents, often due to high competition or rigorous patenting criteria which can limit innovation.

Natural Scarcity

A situation where resources are limited in availability due to natural conditions, not enough to meet unlimited human wants.