Question

What is your opportunity cost of attending classes on campus? For the purposes of keeping things simple, focus on finding the opportunity cost, expressed as a dollar amount of your opportunity cost of attending a one-hour class on campus. First, find all your alternatives to attending class. Then assign a dollar value to each alternative. Next rank your alternatives, and last, based on the highest ranked alternative, share your opportunity cost. Since you have made the decision to take this course online, how would your opportunity cost compare to that of another student already taking the same course on campus. Explain.

Answer 1

Opportunity cost is the second best alternate forgone.

Say If I had not attended classes on campus then

Say I would have done a painting which would had paid me $100

second I would have played cricket which would give me a payoff of $120

Third, I would had slept at my home which would had given me the payoff of $150.

Then opportunity cost of attending classes on campus would be $150 because this amount of time I could have used in sleeping and could had get a payoff of $150.