Before you started applying for graduate school, a job recruiter offered you a full-time position at a doctor's office earning an after-tax salary of $25,000 per year. However, you turn down this offer and attend your first year of grad school. The additional monetary cost of the first year of graduate school to you, including tuition, supplies, and additional housing expenses, is $32,000.

1. What is the opportunity cost of your first year in graduate school? Explain.