Inayah needs Rs.100, 000 to start an ice-cream business. If she uses Rs.40, 000 from her savings and another Rs.60, 000 borrows from the bank. The interest rate is 5% in the market. Find the opportunity cost that Inayah has to bear in order to start a business? (2.5 Marks).
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Opportunity cost is the value of next best alternative, it's what is given up. It is loss of potential gain from other alternative when one option is chosen. It can be explicit or implic
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