The cost of attending a private college for year is $6000 for tuition. $2000 for

Question

The cost of attending a private college for  year is $6000 for tuition. $2000 for the room, 1,500 for meals and 500 for books and supply's. The student could also have earned 15,000 by getting a job instead of going to college and 10 percent interest on expenses He are she inquires at the beginning of the year. Calculate the explicit, implicit, and total economic cost of attending college
The cost of attending a private college for  year is $6000 for tuition. $2000 for the room, 1,500 for meals and 500 for books and supply's. The student could also have earned 15,000 by getting a job instead of going to college and 10 percent interest on expenses He are she inquires at the beginning of the year. Calculate the explicit, implicit, and total economic cost of attending college
The cost of attending a private college for  year is $6000 for tuition. $2000 for the room, 1,500 for meals and 500 for books and supply's. The student could also have earned 15,000 by getting a job instead of going to college and 10 percent interest on expenses He are she inquires at the beginning of the year. Calculate the explicit, implicit, and total economic cost of attending college

Explanation / Answer

(1) Explicit costs = Tuition + room + meals + books

= $(6000 + 2000 + 1500 + 500)

= $10,000

(2) Implicit costs = Alternate earning from job + 10% Interest on explicit cost

= $15,000 + 10% x 10,000

= $(15,000 + 1,000)

= $16,000

(3) Economic cost = Explicit cost + Implicit cost

= $(10,000 + 16,000)

= $26,000

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