web.kamihq.com a Amazon.com: Prime Vide_. M (12) - rkreynante@gmail. M (2,683) - 193436@oxnar. G Classwork for Perez, HE. Perez, H Econ. > lanna Erry Brosas - Homework (a) (Opportunity Cost).pdf only play basketball until age 35. After his basketball career ends, he will still have 30 years to work. College Tuition Payments Pro Basketball Salary Career Salary Finish 3 years @ $50,000 per year = 12 years @ $3 million per year = 30 years @ $550,000 per year = College $150,000 $36,000,000 $16,500,000 Enter the 0 years @ $50,000 per year = 15 years @$3 million per year = 30 years @ $100,000 per year = Draft $0 $45,000,000 $3,000,000 Calculate Opportunity Cost Make a Decision Finish College 15) Using your calculations from the previous section, 9) What is the explicit cost of finishing college? which option should Jay choose? Why? Hint: explicit costs involve actually spending money. 16) Suppose Jay really enjoys playing in the pros. If playing in the pros for 3 extra years brings him an 10) What is the implicit cost of finishing college? additional $6 million in emotional benefit, would Hint: implicit costs involve money that you miss out on. this change his decision? Explain. Hint: Add $6 million of implicit costs to finishing college. 11) What is the opportunity cost of finishing college? Opportunity Cost = Explicit Costs + Implicit Costs Unintended Consequences 17) Suppose Jay decides to finish college, but during his senior year, he receives a season-ending injury. As a result, he is drafted in a later round and can Enter the Draft only make $2 million a year as a pro athlete. How does this change his original calculations? 12) What is the explicit cost of entering the draft? Hint: Recalculate the opportunity cost for finishing college. 13) What is the implicit cost of entering the draft? 18) If Jay gets injured his senior year, then it makes more financial sense to have entered the draft after his freshman year. Although it was not the best decision in the end, why was Jay's decision to 14) What is the opportunity cost of entering the draft? finish college a good decision at the time? MacBook Pro