What is the opportunity cost of this decision?
Costs are classified according to the type of analysis that is being done. Suppose you were offered a job making $50,000 annually after you received your undergraduate degree. However, you made a decision to get your MBA in 2 years rather than taking the job. You will incur tuition, books and living costs for these 2 years.
• What costs are relevant to your decision? Note that some costs relevant to a decision may not be quantitative.
• What is the opportunity cost of this decision.
• Comment on response of 2 classmates. Agree or disagree