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A teacher is earningRs.10000as a salary. If he lives this work and starts giving tutions he is expected to earn Rs 18000 per month.what will be his opportunity cost as a tutor?
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A teacher is earningRs.10000as a salary. If he lives this work and sta...
Opportunity Cost as a Tutor
Introduction:
Opportunity cost is defined as the value of the next best alternative foregone when making a decision. In this case, the opportunity cost of the teacher choosing to become a tutor would be the potential earnings he would lose by leaving his job as a teacher.
Scenario:
The teacher is currently earning a salary of Rs. 10,000 per month. However, if he decides to leave his teaching job and become a tutor, he expects to earn Rs. 18,000 per month. To calculate the opportunity cost, we need to determine the difference in earnings between these two options.
Calculation:
Opportunity cost can be calculated by subtracting the earnings from the chosen option (tutoring) from the earnings from the next best alternative (teaching job).
Opportunity Cost = Earnings from Teaching Job - Earnings from Tutoring
Opportunity Cost = Rs. 10,000 - Rs. 18,000
Opportunity Cost = -Rs. 8,000
Interpretation:
The negative value of Rs. 8,000 indicates that the teacher would be losing Rs. 8,000 per month by choosing to become a tutor instead of continuing his teaching job. This negative value represents the opportunity cost of his decision.
Explanation:
1. The teacher's current salary: The teacher is earning Rs. 10,000 per month as a salary in his teaching job.
2. Expected earnings as a tutor: If the teacher decides to become a tutor, he expects to earn Rs. 18,000 per month.
3. Calculation: The opportunity cost is calculated by subtracting the earnings from tutoring (Rs. 18,000) from the earnings from the teaching job (Rs. 10,000).
4. Negative opportunity cost: The negative value of Rs. 8,000 indicates that the teacher would be losing Rs. 8,000 per month by choosing to become a tutor instead of continuing his teaching job.
5. Opportunity cost interpretation: The opportunity cost of becoming a tutor is the potential earnings the teacher would forego by leaving his current job. In this case, the teacher would be losing Rs. 8,000 per month by becoming a tutor.
6. Conclusion: The opportunity cost of the teacher becoming a tutor is Rs. 8,000 per month, indicating the potential earnings he would lose by leaving his teaching job.
Introduction:
Opportunity cost is defined as the value of the next best alternative foregone when making a decision. In this case, the opportunity cost of the teacher choosing to become a tutor would be the potential earnings he would lose by leaving his job as a teacher.
Scenario:
The teacher is currently earning a salary of Rs. 10,000 per month. However, if he decides to leave his teaching job and become a tutor, he expects to earn Rs. 18,000 per month. To calculate the opportunity cost, we need to determine the difference in earnings between these two options.
Calculation:
Opportunity cost can be calculated by subtracting the earnings from the chosen option (tutoring) from the earnings from the next best alternative (teaching job).
Opportunity Cost = Earnings from Teaching Job - Earnings from Tutoring
Opportunity Cost = Rs. 10,000 - Rs. 18,000
Opportunity Cost = -Rs. 8,000
Interpretation:
The negative value of Rs. 8,000 indicates that the teacher would be losing Rs. 8,000 per month by choosing to become a tutor instead of continuing his teaching job. This negative value represents the opportunity cost of his decision.
Explanation:
1. The teacher's current salary: The teacher is earning Rs. 10,000 per month as a salary in his teaching job.
2. Expected earnings as a tutor: If the teacher decides to become a tutor, he expects to earn Rs. 18,000 per month.
3. Calculation: The opportunity cost is calculated by subtracting the earnings from tutoring (Rs. 18,000) from the earnings from the teaching job (Rs. 10,000).
4. Negative opportunity cost: The negative value of Rs. 8,000 indicates that the teacher would be losing Rs. 8,000 per month by choosing to become a tutor instead of continuing his teaching job.
5. Opportunity cost interpretation: The opportunity cost of becoming a tutor is the potential earnings the teacher would forego by leaving his current job. In this case, the teacher would be losing Rs. 8,000 per month by becoming a tutor.
6. Conclusion: The opportunity cost of the teacher becoming a tutor is Rs. 8,000 per month, indicating the potential earnings he would lose by leaving his teaching job.
Community Answer
A teacher is earningRs.10000as a salary. If he lives this work and sta...
His opportunity cost as a tutor is Rs. 10,000.
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A teacher is earningRs.10000as a salary. If he lives this work and starts giving tutions he is expected to earn Rs 18000 per month.what will be his opportunity cost as a tutor?
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A teacher is earningRs.10000as a salary. If he lives this work and starts giving tutions he is expected to earn Rs 18000 per month.what will be his opportunity cost as a tutor? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A teacher is earningRs.10000as a salary. If he lives this work and starts giving tutions he is expected to earn Rs 18000 per month.what will be his opportunity cost as a tutor? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A teacher is earningRs.10000as a salary. If he lives this work and starts giving tutions he is expected to earn Rs 18000 per month.what will be his opportunity cost as a tutor?.
A teacher is earningRs.10000as a salary. If he lives this work and starts giving tutions he is expected to earn Rs 18000 per month.what will be his opportunity cost as a tutor? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A teacher is earningRs.10000as a salary. If he lives this work and starts giving tutions he is expected to earn Rs 18000 per month.what will be his opportunity cost as a tutor? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A teacher is earningRs.10000as a salary. If he lives this work and starts giving tutions he is expected to earn Rs 18000 per month.what will be his opportunity cost as a tutor?.
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