Larry was accepted at three different graduate schools, and must - 11543

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yousafbhutta

yousafbhutta

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Solution Detail
Price: $1.00
  • From: , Microeconomics
  • Posted on: Sun 24 Jun, 2012
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Request Description

Larry was accepted at three different graduate schools, and must choose one. Elite U costs $ 50,000 per year and did not offer Larry any financial aid. Larry values attending Elite U at $ 60,000 per year. State College costs $ 30,000 per year, and offered Larry an annual $ 10,000 scholarship. Larry values attending State College at $ 40,000 per year. NoName U costs $ 20,000 per year, and offered Larry a full $ 20,000 annual scholarship. Larry values attending NoName at $ 15,000 per year.
The opportunity cost of attending Elite U is

  •  $ 50,000.
  •  $ 10,000.
  •  $ 20,000.
  •  $ 15,000.
Solution Description

 

Larry was accepted at three different graduate schools, and must choose one. Elite U costs $ 50,000 per year and did not offer Larry any financial aid. Larry values attending Elite U at $ 60,000 per year. State College costs $ 30,000 per year, and offered Larry an annual $ 10,000 scholarship. Larry values attending State College at $ 40,0