Question

What are the opportunity cost for...

Buying Vs. leasing a car,

Going out to eat Vs. preparing food at home

Walking or taking public transportation

Answer 1

1 - The case of buying a car will be more expensive and that of leasing will be cheaper. Hence if we dont buy the car , and lease it we can invest that extra amount saved by leasing and earn the returns. Hence this sacrificed return on saved amount is the opportunity cost of buying the car.

2 - The amount spent on eating in the restaurant which could have been utilized in any other task will be the opportunity cost of eating outside rather than preparing at home. If food is prepared at home , the cost of eating outside will be saved.

3 - If we take the public transportation , rather than walking , we will incur the additional cost of transportation which could be saved if distance is covered by walking. Hence the cost incured for transportation is the opoortunity cost.