Question

Suppose you plan to take summer courses. The cost of tuition and
textbooks is $1,200, housing will cost you $400, and you'll spend
$300 on food. If you decide not to take courses in the summer,
you'll live in your parents' house for free and spend only $100 on
food. Also, if you don't take courses in the summer, you'll work full
time and could earn $5,000. You can still work part time while
taking courses, but you will only earn $1,000. What is your
opportunity cost of taking courses in the summer?

Answer 1

Answer:

$5800

Explanation:

The income that would be earned if the summer courses were not taken is $5000 while we spend only $100 on food.

Besides, by taking the summer courses costs to be incurred is computed thus:

costs of summer courses=$1,200+$400+$300=$1900

By taking the summer courses one would earn $1000

In short, the opportunity of taking the summer courses is the earnings of -$5000 forgone plus the cost of $100 saved, plus the $1000 earned minus the $1900 spent on summer courses

i.e -$5000+$100+$1000-$1900=-$5800