Answer to Question #155321 in Microeconomics for Raghunandan

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=return on the best option not chosen-return on the option chosen

=400-200

=Rs200