<p>This question is worded poorly, because some of the information needed to determine the benefit of going to university is in the text of a).</p>
<p>Economic cost = Explicit costs + implicit costs.</p>
<p>Economic costs = 3000 EUR + 20,000 EUR = 23,000 EUR</p>
<p>Benefit of attending university (apparently): 24,000 EUR additional lifetime earnings.</p>
<p>Benefit - cost = 1,000 EUR &gt; 0.</p>

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2023-08-22T15:10:39.643Z
2023-08-22T15:10:39.643Z
A. Miller
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<p>Here's how I'd respond (could someone please verify):
a) Net gain = 24000 - 3000 = 21000 &gt; 0 so she would consider this option
b) False. The economic cost is = 20000 + 3000 = 230000 EUR
c) False. Her opportunity cost of studying at university is 20000
d) False. The opportunity cost of going to university for Yang is based on the earnings she would forego by not working in the factory during the four years of her studies.</p>

<microeconomics><opportunity-cost>
Opportunity Cost
Inès
# Opportunity Cost

(Asked by: username_0 on 2023-08-22)

[![enter image description here](https://i.sstatic.net/fk7Ew.png)](https://i.sstatic.net/fk7Ew.png)

Here's how I'd respond (could someone please verify):
a) Net gain = 24000 - 3000 = 21000 > 0 so she would consider this option
b) False. The economic cost is = 20000 + 3000 = 230000 EUR
c) False. Her opportunity cost of studying at university is 20000
d) False. The opportunity cost of going to university for Yang is based on the earnings she would forego by not working in the factory during the four years of her studies.

**Tags:** microeconomics, opportunity-cost


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## 1 answers

### Answer by username_1 on 2023-08-22. Score: 0 | Accepted answer

This question is worded poorly, because some of the information needed to determine the benefit of going to university is in the text of a).

Economic cost = Explicit costs + implicit costs.

Economic costs = 3000 EUR + 20,000 EUR = 23,000 EUR

Benefit of attending university (apparently): 24,000 EUR additional lifetime earnings.

Benefit - cost = 1,000 EUR > 0.


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