Multiple choice

Suppose you find Rs. 100. If you choose to use Rs. 100 to go to a football match, your opportunity cost of going to the game is

  1. nothing, because you found the money.

  2. Rs. 100 (because you could have used Rs. 100 to buy other things) plus the value of your time spent at the game.

  3. Rs. 100 (because you could have used Rs. 100 to buy other things) plus the value of your time spent at the game, plus the cost of the dinner you purchased at the game.

  4. Rs 100 (because you could have used Rs. 100 to buy other things).

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Opportunity cost includes the value of the next best alternative use of resources. The Rs. 100 could have purchased other goods (value = Rs. 100), AND your time at the game has value that could have been used elsewhere. Both are sacrificed. The cost of dinner is part of the game experience, not an additional alternative cost. Finding the money doesn't eliminate opportunity cost - the money still has alternative uses.

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