Opportunity Cost of Getting a Degree
What is your opportunity cost of getting a degree? Think about these questions:
- What is the benefit/satisfaction of the next best thing forgone?
- Would you have paid tuition and school related expenses if you had done the next best thing?
- Is opportunity cost of getting a degree the value of the next best forgone alternative or the sum of ALL the alternatives?
- What is the difference between cost and opportunity cost of getting a degree
- What is Opportunity Cost of Getting a Degree
|What do you have to pay when you are in school which you would have not if you worked?||Would this cost be included?||Amount||Items affecting your opportunity cost of getting a degree|
|What else are you sacrificing? If you had worked, would you have made any wages?||Yes No||$20,000|
- What is Opportunity Cost of Watching a Movie
You purchased a sweater for $100 because the winter is approaching and it is cold. You were planning to go to the movies and you want to measure your cost of going to the movies.
Price of the Ticket = $20
Your hourly wage = $10
Movie is 2 hours
Opportunity Cost of watching the movie _____________
You value this movie up to $30 due to the satisfaction it gives you and you know if you wait one week, you will watch it in Netflix. Will you go to the movies?
Benefit ______________________ Cost____________________ Decision _______________