Answer to Question #224014 in Microeconomics for Tobex

Question

You plan to upgrade your computer skills by taking a training course at the end of this semester. If you do, you wont be able to take your usual job that pays #16,000 per month and you wont be able to live at home for free. The cost of your tuition will be #20,000, equipment #2000 and living costs #10,400. What is the opportunity cost of your summer training course?

Answer 1

Opportunity cost = Return on most profitable choice of investment - return on investment that is chosen to be undertaken.

Opportunity cost$=20000-16000$

$=4000$