Question

Your sister is a dentist and works at the National Institute of Dental Caring. She withdraws a monthly salary of Rs. 50,000. Your father advises her to open her own clinic, she estimates that it would cost Rs. 5,00,000 per year to rent the location and other expenses. What is your sister’s opportunity cost of running her own clinic for a year? If your sister thinks she can earn Rs. 10,00,000 from her patients in a year, should she open the clinic?explain​

Answer 1

Answer:

Your sister is a dentist and works at the National Institute of Dental Caring. She withdraws a monthly salary of Rs. 50,000. Your father advises her to open her own clinic, she estimates that it would cost Rs. 5,00,000 per year to rent the location and other expenses. What is your sister’s opportunity cost of running her own clinic for a year? If your sister thinks she can earn Rs. 10,00,000 from her patients in a year, should she open the clinic?explain