You find Rs 20 and decide to spend it on going to a football match. What is your opportunity cost of attending the game?
Correct answerA. Rs 20 (because you could have used the Rs 20 to buy other things) plus the value of your time spent at the game
Explanation
Found money still has alternative uses, so spending it is a real sacrifice, and the time at the match could have been used elsewhere. Dinner is excluded because you would eat anyway.
Discussion