20.3.1 - Opportunity Cost
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Practice Questions
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What does opportunity cost refer to?
💡 Hint: Think about what you give up when you make a choice.
Provide an example of opportunity cost.
💡 Hint: Consider decisions about your time.
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Interactive Quizzes
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What does opportunity cost represent?
💡 Hint: Think about alternatives you consider before deciding.
True or False: Opportunity cost only refers to financial loss.
💡 Hint: Consider other factors beyond money.
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Challenge Problems
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A company has to decide between investing ₹1,000,000 into research and development or marketing. Calculate the opportunity cost if the expected return on R&D is ₹200,000 and from marketing is ₹300,000.
💡 Hint: Compare the potential returns from both options.
If a student spends four years in college for a degree while having had the opportunity to work full-time earning ₹500,000 annually, calculate the total opportunity cost assuming the degree leads to a ₹700,000 per year job afterwards.
💡 Hint: Take into account the total income over the four years versus what the degree leads to.
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