Question

18. Mr. Siddharth has
three options to
choose from
employment options; 1.
Rs. 80,000 2.Rs.
70,000 3. Rs. 60,000
Opportunity cost for
choosing option-
working conditions is
same:
O a. Rs. 70,000
O b. Rs. 80,000
O c. Rs. 60,000
O Rs. 10,000​

Answer 1

Answer:

b

he should choose 80,000

Answer 2

Answer:  The correct answer is option (d).

Explanation:

Opportunity cost is a measure of the advantages that a company, person, or investment forgoes when selecting one action option over another. A company can identify which choice will yield the biggest or most fruitful return by examining the opportunity cost of a certain option or options.

Opportunity cost is calculated by the difference between the return best foregone option and return on the chosen option.

In this problem, the chosen employment option is $Rs 80000$ and the best foregone employment option is $Rs 70000$, so the opportunity cost is:

$Rs 80000-Rs 70000 = Rs10000$

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