A TEACHER CAN DO THREE JOBS--- TEACHING , TUTION WORK AND WRITING BOOKS. HE GETS RS 1 LAKH FROM TEACHING, AND RS 1.5 LAKH FROM TUTION WORK AND 3 LAKH FROM ROYALTY OF BOOKS. HE IS PRESENTLY WRITING BOOKS. WHAT IS THE OPPORTUNITY COST OF WRITING BOOKS.......PLEASE EXPLAIN

Opportunity cost refers to the value of next best alternative that is foregone when one of the alternatives is chosen. Now the next best alternative to writing work is tution work from which the teacher can earn Rs 1.5 . Thus, the opportunity cost of writing books is Rs 1.5 lakh.