Question

Suppose your college institutes a new policy requiring you to pay for a permit to park your car in a campus parking lot

A) the cost of parking permit is not part of the opportunity cost of attending college if you would not have to pay for parking otherwise

B) the cost of parking permit is part of the opportunity cost of attending college if you would not have to pay for parking otherwise

C) only half of the cost of the parking permit is part of the opportunity cost of attending college

D) the cost of the parking permit is not part of the opportunity cost of attending college under any circumstances

Answer 1

Option B.

• It is given that a new policy requires you to pay for a permit to park your car in a college campus.
• The cost of parking permit would only be considered as a part opportunity cost of attending college if you would not have to pay for parking otherwise.
• This is because, you get a chance to choose whether to pay for the parking or not.
• If benefit of parking overweighs the cost of parking, then giving up the decision to save rather than spend is more wise.

answered by: anonymous