please explain opportunity cost

Question

Answer

Well to understand what is opportunity cost lets take an example suppose you have a Rs 25000 and u want to purchase one computer and a LCD TV. With Rs 25000 only u cannot have both. U can either buy comp. or LCD TV. If u decide to purchase comp. then the opportunity cost of choosing the comp. is the cost of forgone satisfaction from LCD TV. So in this way we can understand the concept that the amount of other goods and services that must be sacrificed to obtain more of any one good is called the opportunity cost of that good.

Answer

opportunity cost is the next best alternative

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For example when their are two workerOne is asking for Rs 1000 and another is asking for rs 1500. What will be the opportunity cost if i select 2nd worker?

Answer

if u have 2 option and u r selecting anyone then which option u r not selecting this will be ur opportunity cost...suppose 1.job in bank                  2.job in school u r selecting option 1st then 2nd option is ur sacrificing costthis is also ur next best alternative

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