Your decision to pursue a higher-level degree is based on investment in human capital. What are the marginal costs and benefits of pursuing additional education and the inherent risks associated with this decision?© BrainMass Inc. brainmass.com October 17, 2018, 2:58 am ad1c9bdddf
When answering this question, you need to understand the opportunity costs and benefits associated with your education.
To pursue additional education, you're giving up time and money. The time you're using to gain additional education you could be using for other activities or pursuits. For one, you could be working, so the value of your time can be quantified by the wages you're not earning. Also, you can value your time by the utility (benefit or satisfaction) you would receive from other activities, such as leisure. However, it is harder to quantify the value of leisure than it is to quantify the value of work, since wages provide ...
This posting clearly depicts the marginal costs and benefits of pursuing additional education and the inherent risks associated with this decision as well.
Opportunity cost, marginal cost, relevant cost
Analysis of cost and its role in the decision-making process by answering the following questions:
- Citing examples, differentiate between opportunity cost, marginal cost, and relevant cost.
- Assess the relationship of marginal benefit and marginal costs. How is marginal benefit measured, and how does it relate to marginal costs?
- What other factors must managers address before making decisions? Why?