Answer to Question #155282 in Microeconomics for Priyansu

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

Opportunity Cost is the value of the foregone alternative where choice has been made. In this case the foregone alternative is the tutorial for Rs. 200 per hour. Hence the opportunity cost of studying is Rs. 200.