Module 1 HW - a. Calculate the opportunity cost of an...

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Unformatted text preview: a. Calculate the opportunity cost of an increase in the number of hours spent studying in order to earn a 3.0 grade point average (GPA) rather than a 2.0 GPA. Total Hours Hours Hours Studying GPA Working Income 60 60 4.0 $- 60 40 3.0 20 $100.00 60 30 2.0 30 $150.00 60 10 1.0 50 $250.00 60 0.0 60 $300.00 Income when working for 30 hours( 2 gpa) $150.00 Income when working for 20 hours( 3 gpa) $100.00 Opportunity cost= 150-100 $50.00 0.0 GPA to a 1.0 GPA as it is for a move from a 1.0 GPA to a 2.0 GPA? Total Hours Hours Hours Studying GPA Working Income 60 60 4.0 $- 60 40 3.0 20 $100.00 60 30 2.0 30 $150.00 60 10 1.0 50 $250.00 60 0.0 60 $300.00 Opportunity cost for a move from 0.0 to 1.0 GPA is $50 ($300-$250) This is because if instead of w initial 10 hours, the person studies and because the person studies they loose $50 which represen Therefore, the opportunity cost for a move from 0.0 to 1.0 GPA is $50. Opportunity cost for a move from 1.0 to 2.0 GPA is $100($250-$150). This is because if instead of 20 hours, the person studies and because the person studies they loose $100 which represents th Therefore, the opportunity cost for a move from 1.0 to 2.0 GPA is $100. Now that we have this information gathered I have broken it down and summarized it below: Opportunity cost from 0.0 to 1.0 = $50.00 Opportunity cost from 1.0 to 2.0 = $100.00 So as you can see the opportunity cost are not the same b. Is the opportunity cost the same for a move from a working for that nts the opportunity cost. f working those he opportunity cost. from $100 to $150?...
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Module 1 HW - a. Calculate the opportunity cost of an...

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