Question

If you were to consider the principles of opportunity cost, MR, and MC; how would these economic concepts impact your justification to complete an MBA?

Answer 1

The principle of opportunity cost, marginal revenue and marginal cost are the principles that help understand the economic scenarios, trade-off between the different opportunities and take the rational decision with proper reasoning.

The principle of opportunity cost, helps to ascertain that there is a income loss due to pursuing of the MBA program, but salary paid to the MBA graduates are much higher than the non-MBA graduates. So, it is good and wise to pursue and complete MBA program to earn higher income in the coming future for the whole career period.

On a similar note, marginal cost in terms of fees and other expenses to complete the MBA education is compared with the marginal benefits in terms increased salary and perks. It is found that marginal benefit of doing MBA is much higher than the marginal cost. It makes me take the justified decision to complete the MBA program.