Question

1. J.C. is a high school senior who carries a 4.0 average and scored a 32 on her ACT. She is also one of the best female golfers in the world and experts predict that she would earn $500,000+ in her first year on the LPGA professional golf tour. Using concepts studied in Modules 1 and/or 2, explain why not going to college and joining the LPGA tour is the rational choice for J.C.

Answer 1

Opportunity Cost is the benefit foregone by not choosing the second best alternative. The opportunity cost of J.C. going to college is $500,000+ which she has to forego by not going for LPGA professional golf tour. Thus J.C. should go for LPGA professional golf tour and should not go to college as the opportunity cost is very high.