Answer to Question #155175 in Microeconomics for Sakshi Sinha

Question

You have one scarce hour to spend between studying for an examination  or taking classes in a tutorial for Rs. 200 per hour. You choose to study for  examination. What is the opportunity cost of studying?

Answer 1

Solution:

Opportunity cost is the next best alternative forgone.

Therefore, the opportunity cost for studying is the one hour that could have been spend on taking classes for a tutorial for Rs.200 per hour.