If Your Tuition Is $20,000 This Semester, Your Books Cost

question 58

Multiple Choice

If your tuition is $20,000 this semester, your books cost $2,000, you can only work 10 rather than 40 hours per week during the 15 weeks you are taking classes and you make $15 per hour, and your room and board is $8,000 this semester (same as if not attending college) , then your opportunity cost of attending college this semester is

• A) $22,000.
• B) $22,150.
• C) $28,750.
• D) $36,750.

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Definitions:

Average Revenue

The total revenue generated by a company divided by the number of units sold, indicating the revenue generated per unit.

Marginal Revenue

The supplementary income generated by a firm when it sells an extra unit of a product or service.

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the number of units produced, reflecting the cost per unit.

Marginal Cost

The incremental cost incurred from the production of an extra unit of a product or service.