Respuesta :
Andrew is giving up $120,000.00 by quitting his job for 2 years and the cost for the degree is 25,000 per year so its costing him $170,000.00 for the degree.
Answer:
Total cost = $ 50000+ $120000= $170000
Explanation:
For this case we know that the tuiton fee given $25000/year
Since he go back to school for two years the total explicit cost is given by:
Total explicit cost = $25000/year *2years = $50000
Since Andrew quits his job that represent an implicit cost that is given by:
Implicit Cost or Opportunity cost= $60000/year *2 years= $120000
And then we can find the total cost with this formula:
Total cost = Explicit cost + Opportunity cost
Total cost = $ 50000+ $120000= $170000
