Some college students have claimed that because their incomes will be higher as a result of attending college, there is no opportunity cost of attending college. Do you agree? Explain
No. Although the rate of return on college education seems to be fairly high, there is still an opportunity cost of attending. Besides the explicit (out-of-pocket) costs of tuition, books, etc., there is the implicit cost of forgone income during college years. It should be noted, however, that if students have very low value in the labor marketplace, then the implicit cost is low-but not zero.
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Into what four categories do economists divide factors of production?
a. land, labor, capital, and entrepreneurship b. land, labor, money, and entrepreneurship c. resources, labor, capital, and entrepreneurship d. resources, labor, money, and entrepreneurship
Costs that are independent of the firm's level of output are called
a. fixed costs. b. marginal costs. c. opportunity costs. d. sunk costs.