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Introduction of Micro-Economics — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsIntroduction of Micro-Economics3 Marks
Question
What is opportunity cost? Explain with the help of a numerical example.
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Answer

Opportunity cost for a commodity is the amount of other commodity that has been foregone in order to produce the first.
For example, if a person ‘A’ is working in a bank and gets a job offer of a journalist. A as a bank executive, gets ₹ 40,000 and as journalist would get ₹ 45,000. In this case, the opportunity cost of being a journalist is ₹ 40,000, which is the second best opportunity.

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