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Marginal Costs and Benefits of Pursuing Additional Education

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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?

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When answering this question, you need to understand the opportunity costs and benefits associated with your education.

Opportunity costs:
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 ...

Solution Summary

This posting clearly depicts the marginal costs and benefits of pursuing additional education and the inherent risks associated with this decision as well.

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