Answer to Question #155208 in Microeconomics for Ankit Adak

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

The tutorial for Rs. 200 per hour,

From the definition of opportunity cost, the value of the foregone alternative after making choice is the tutorial for Rs. 200 per hour.