Opportunity Cost Comparison

Essay by fishersciUniversity, Master'sA+, March 2004

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When making decisions in personal and professional lives, one must identify and compare opportunity costs. When comparing options, it is important to analyze every cost and other opportunities that one must give up. Choosing between taking an absence from work, moving out of town and pursuing a MBA degree full time or maintaining one's current job while enrolled in a local MBA program has many opportunity costs for each. Focusing first on taking an absence from work, moving out of town and pursuing a MBA degree full time, there are many hidden costs. By taking an absence from work, one must adjust to saving money and taking time to find a part time job in a new town. If the individual earned an average of twenty dollars an hour, and eight hundred a week, they have to identify the cost of living in the new area and live within the means to pay the bills.

Looking for a part time job requires a great deal of time and money as well. Taking the time to search for possible jobs on the Internet, newspapers, and also using gasoline to drive to interviews is a cost that one wouldn't normally consider. Moving out of town requires the selling of one's current house and buying or renting a new place with deposits and down-payments. Also, hiring movers, or renting trucks for moving day is very expensive. Since gas prices are constantly increasing, relocating costs are very high and time consuming.

Although beginning a new education program is exciting it is very expensive. Average classes are approximately fourteen hundred dollars not including books. Since this will be a new town, this individual will have to pay out of state educational fees. Also, since he/she does not have a full-time job, there is no...