Question

Michelle just graduated from high school and is considering attending college. She estimates that college tuition and books will cost approximately $4,767 per semester. Alternatively, if Michelle doesn't go to college, she could earn $8 per hour working as a store clerk. Add implicit and explicit costs to determine Michelle's total economic cost of attending college during one semester. Assume a semester has 1,000 work hours. What is Michelle's total economic cost of attending college during one semester (round your response to the nearest dollar)?

Answer 1

Answer:

$12,767

Explanation:

The explicit costs of Michelle attending college is given as $4,767

The implicit costs of Michelle attending college is the opportunity cost of not working as a store clerk which means that money cannot be earned and will more or less be wasted because she is going to college: That cost is given as $8 * 1000 hours which is $8000 per semester.

Michelle's total economic cost of attending college during one semester is $12,767.