A Chartered accountant is earning ₹1,00,000 per month with his own practise . He would earn ₹75,000 per month from a job in reliance industries or ₹65,000 per month from a consultancy. What will be his opportunity cost.
Answers
Answered by
0
Answer:
75000 is the opportunity cost because opportunity cost define next best alternative so this question next best alternative is 75000
Answered by
1
Answer:
₹75,000
Explanation:
AS HE IS EARNING ₹1,00,000 PER MONTH . ACCORDING TO HIS VIEW IT IS BEST OPTION FOR HIM BUT IN OUR PERSPECTIVE WE ARE TO MEASURE OPPORTUNITY COST . (AS OPPORTUNITY COST IS THE COST OF NEXT BEST ALTERNATIVE WHEN FORGOING PRESENT) SO ,THE NEXT BEST OPTION FOR CHARTED ACCOUNTANT IS EARNING ₹75,000 PER MONTH .
HENCE, OPPORTUNITY COST IS ₹75,000.
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