Mr. Rahim is planning to pursue MBA studies. Initial inquiry shows that he will have to pay RM 25,000 as tuition fee, buy books for RM 1,000, and pay for transport RM 1,000. The MBA study programme will extend over 15 months. Mr. Rahim is working now with a salary of RM 2,500 per month. Being a full time student, he will have to forego the income from his present job for the period of study. Work out: (a) Financial cost, and (b) the Economic Cost of doing MBA (Hint: Identify implicit costs and explicit costs)
Mr. Rahim is planning to pursue MBA studies. Initial inquiry shows that he will have to pay RM 25,000 as tuition fee, buy books for RM 1,000, and pay for transport RM 1,000. The MBA study programme will extend over 15 months. Mr. Rahim is working now with a salary of RM 2,500 per month. Being a full time student, he will have to forego the income from his present job for the period of study. Work out: (a) Financial cost, and (b) the Economic Cost of doing MBA (Hint: Identify implicit costs and explicit costs)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Mr. Rahim is planning to pursue MBA studies. Initial inquiry shows that he will have to pay RM 25,000 as tuition fee, buy books for RM 1,000, and pay for transport RM 1,000. The MBA study programme will extend over 15 months. Mr. Rahim is working now with a salary of RM 2,500 per month. Being a full time student, he will have to forego the income from his present job for the period of study.
Work out: (a) Financial cost, and (b) the Economic Cost of doing MBA (Hint: Identify implicit costs and explicit costs)
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