edf40wrjww2CF_PaperMaster:Desc
Opportunity Cost
Overview
The purpose of this paper is to compare and contrast the opportunity cost between the following two options’.
a. Option 1: To take a leave of absence from work, move out of town, and pursue an MBA full time.
b. Option 2: To maintain my job while I am enrolled in a local MBA program.
The comparison and contrast in the opportunity cost
There are a number of comparisons and contrasts between options one and two. In this case, I differentiated the two options from two different points of view.
From the Option 1 perspective, there are three differences from that of option two. First, I would not be making money from working a full time job if I take a leave of absence from work, move out of town, and pursue an MBA full time. In addition, I would also need to pay for the cost of moving, rent, food, and transportation. Second, I would lose the opportunity to have health and retirement benefits. In general, the health benefits for working in the company include long term disability, dental, life insurance, …etc. Depending on the company, the retirement benefits, such as 401k, could have a substantial investment opportunity especially if the company matches a percentage the employees investment into it. Lastly, I would lose work experience if I take a leave of absence from work. In this decade, the more experience you have, the more money you will be able to earn in the future.
From the Option 2 perspective, there are three differences from that of Option 1. First, I would lose a lot personal time for socializing and activities if I ...