Consider Frank's Decision to Go to College

question 53

Multiple Choice

Consider Frank's decision to go to college.If he goes to college,he will spend $21,000 on tuition,$11,000 on room and board,and $1,800 on books.If he does not go to college,he will earn $16,000 working in a store and spend $7,200 on room and board.Frank's cost of going to college is

• A)$33,800.
• B)$42,600.
• C)$49,800.
• D)$57,000.

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Definitions:

Average Variable Cost

Total variable costs divided by the quantity of output, showing the variable cost per unit of output.

Marginal Cost

The price to produce an additional unit of a product or service.

Total Costs

The total expense of manufacturing that encompasses all constant and fluctuating costs.

Average Variable Cost

The cost of labor and materials divided by the quantity of output, representing the variable cost per unit of production.