Question

Your plan to upgrade your computer skills by taking a training course at the end of this semester. If you do, you won't be able to take your usual job that pays #16000 per month and you won't be able to live at home for free. The cost of your tuition will be # 20000, equipment #20000 and living cost #10400. What is the opportunity cost of your summer training course

Answer 1

Opportunity Cost = Return on Most Profitable Investment Choice $-$ Return on Investment Chosen to undertake.

Opportunity Cost =$20,000 - 16,000$

Opportunity Cost =$4,000$