Total Hours HoursStudying GPA HoursWorking Income 60 60 4.0 0 $0.00 60 40 3.0 20

Question

Total Hours HoursStudying GPA HoursWorking Income 60 60 4.0 0 $0.00 60 40 3.0 20 $100.00 60 30 2.0 30 $150.00 60 10 1.0 50 $250.00 60 0 0.0 60 $300.00






Calculate the opportunity cost of an increase in the numbers ofhours spent in studying in order to earn a 3.0 GPA rather than 2.0.Is the opportunity cost the same from a move from 0.0 GPA to 1.0GPA as it is from 1.0 to 2.0 GPA? What is the opportunity cost ofan increase in income from $100 to $150?

Total Hours HoursStudying GPA HoursWorking Income 60 60 4.0 0 $0.00 60 40 3.0 20 $100.00 60 30 2.0 30 $150.00 60 10 1.0 50 $250.00 60 0 0.0 60 $300.00

Explanation / Answer

opportunity cost : 1) the OC gpa of 3 vs 2  is 40-30=10 hours : 2) the OC gpa of 1 vs 0 is 10-0=10 hours : while the OC from 1) and 2) are the same(10 hours each) the OCbtween 1vs 0 and 1 vs 2 is NOT the same 1 vs 0 being 10and 2 vs 1 being 20.....: 3) the OC income 150 vs 100 is 30-20=10 hours

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