IN OTHER WORDS

Tuition
Books
Housing
Foregone Earnings

Accounting Cost

Opportunity Cost

$100,000

$100,000

$4,500

$4,500

$50,000
$180,000

IN OTHER WORDS

APPLY YOUR LEARNING

Year

Nominal
Value

Average
Price

Real
Value

2014

$4,000

100

40

2015

$4,180

110

38

2016

$4,800

120

40

APPLY YOUR LEARNING

IN OTHER WORDS

Number
of
Workers

Amount of
Machinery

Total
Output

Marginal
Product

$4m

10

10

$4m

24

14

$4m

39

15

17

$4m

255

15

18

$4m

267

12

APPLY YOUR LEARNING

1995
1996
1997
1999
2000
2002
2003
2004
2006
2007
2009
2010
2012
2013

160

140

120

100

80

60

40

20