Question : Let's say you earn Rs. 40,000 a month from your job at a bank. Assume you also receive the following two job offers: (a) an executive position paying Rs. 30,000 per month; or (b) a journalist position paying Rs. 35,000 per month. The opportunity cost of working in a bank in the example provided is ____.
Option 1: Rs.35,000
Option 2: Rs.30,000
Option 3: Rs.40,000
Option 4: Rs.1,05,000
Answer (1)
22nd Jan, 2024
Correct Answer: Rs.35,000
Solution : Opportunity cost is the price paid to forego the next best option. In the example provided, the opportunity cost of choosing to work for a bank is the loss of Rs. 35,000 from the next best option. Hence, the correct option is 1.
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