A teacher is getting Rs.6000 per month as salary. If he leaves the job and starts tuition work, he is expected to earn Rs.5000 per month. What would be his opportunity cost?


Opportunity cost is defined as the sacrifice of one commodity (goods or services) in order to have its alternative. Opportunity cost of working in a school as a teacher is Rs 5000 that the teacher could have earned by providing tuition to students.  

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His opportunity cost would be Rs.5000 as it is his next best alternative forgone
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