1. Suppose Richard has a job that pays him $87 000 per year (after taxes). He is considering taking an unpaid leave of absence from his job to complete a 12-month MBA program. Tuition is $75 000 and books and materials will cost $5000. Living expenses for the 12-month period will be cheaper by $500 per month, mostly due to lower apartment rental costs. What is the opportunity cost of Richard's 1-year MBA program? Choose the correct answer from the list of choices below. Clearly explain how the lower rental cost is incorporated in your answer.