Question

Prior to attending college, Marvin is offered a lucrative four-year contract as an actor in a daytime soap opera. Assuming that acting and attending college are Marvin's preferred alternatives and that he must choose between the two, his opportunity cost of attending college after receiving the offer ________________, making him ____________ likely to attend college than before he received the offer.

Answer 1

Answer: increases; less

Explanation:

Opportunity cost refers to losing another alternative as you choose the other when given more than one alternatives.

Alex is given an offer from one of the things that are his high preferences , after given an offer to be an actor for four years the chances of him letting go of going to college increases hence that is an increase in opportunity cost.

It is very likely that he will take the offer and give up the idea of going to college.

There is a chance of his career starting too early for him and all other lucrative benefits that a young person may be thrilled to receive at such an early age.

That is very attractive especially for a young person.