Answer:
1.
a. It is the amount of income that he may have gained in case he finished his Bachelor majoring in Finance ($150,000/Year).
b. The decision should be based on the economic profit once a decision is made. In other words, all the benefits and costs including explicit costs and implicit costs (opportunity costs) are taken into consideration so the choice with highest economic profit is chosen.
c. No, they are not. It may be measured in various terms including personal values, time, personal feelings, personal health...In fact, opportunity costs are the costs which are lost in once a decision is made, these costs are not necessarily measured in quantitative form, instead, they may be measured in qualitative form.
d. The opportunity costs may be in various forms such as: payment you may earn from working part-time job in these 90 minutes; watching your favorite sport game and getting exciting; go to the gym to get fit
2.
a. Explicit cost: tuition fees and other costs relating to the study such as books, accommodation, documents printing... Implicit cost: payment you may earn by starting full-time working instead of going to college
b. Because it will not bring them economic profit. In fact, going to college causes them huge opportunity cost ( even bigger then the explicit cost which is mainly the tuition fees) relating to the huge income sacrifice, the time they spend to practice to get better in their career ( which will result in higher income in the future) instead of going to classes.
c. An intelligent person is not necessarily a person perform their best in college. It may be a person that is best in sport, cooking, singing. Thus, they should be specialized in the industry/field that they are the best of themselves to minimize the opportunity cost and maximize benefits. Thus, college is not always the right choice for everyone.
Explanation:
Explanation is given right in each answer.
