principles of microeconomics
assignment 1
Suppose that next fall, your tuition bill increases by $50. Briefly describe your opportunity cost
of the paying the extra tuition.
If I have to pay an additional $50 on tuition in the fall, my opportunity cost will be the value of
what I sacrificed; in other words, the value of the most-preferred alternate use of that $50. For
example, I will sacrifice the value I would have received from $50 spent on groceries.
*Note: the answer will depend upon what alternate use of that amount is your mostpreferred, and will not necessarily be the same as the example described above.