Application #2

Cost-Benefit Analysis

1. Create a cost-benefit analysis for going to college. What are the possible costs of going to college (monetary and otherwise)? The possible benefits?

2. Take a look at your list of costs and put a star next to any that might be considered opportunity costs.

3. Now finish these two sentences:

• The marginal cost of going to college for one additional year is _____________________.
• The marginal benefit of going to college for one additional year is ___________________.