Andrew quits his job as an accountant where he earns $55,000 per year to go back to school for two years to get an mba degree. he attends a school that charges $25,000 per year for tuition and related expenses. how much is the total cost (explicit cost plus opportunity cost) of that degree? a. $143,436 b. $75,000 c. $160,000 d. $153,436

Given,
 Andrew's earning was $55,000 per year.
 Fees(tuition and other related expense) for MBA school that Andrew joined $25,000 per year.
   To find: total cost of the degree(explicit cost+opportunity cost)
   Solution:
 Explicit cost = fees for the course including all the expenses = $25,000 per year for 2 years = $25,000*2 = $50,000.
   Opportunity cost = the loss of benefits from one alternative when other alternative is chosen. In this case, it is salary from the job which Andrew quits to join MBA school = $55,000 per year for 2 years = 55000*2 = $1,10,000.
   So, total cost of the degree = $50,000 + $1,10,000 = $1,60,000
    Option C $1,60,000