Suppose that you choose the Science stream You had two other options: the Arts stream (A) or the Commerce - Economics - Introduction

Question

Suppose that you choose the Science stream You had two other
options: the Arts stream (A) or the Commerce stream (C) If you
would have chosen (A), you would have expected a career, offering
you Rs 3 lakhs annually If you would have chosen (C) you would have
expected a career giving you Rs 4 lakhs, annually What is your
opportunity cost of choosing the Science stream?

Vinayak Gadiyar · Accepted Answer

opportunity cost is the cost of the next best alternative
foregone

here, if we choose the scince stream rather than the commerce
stream, than we forgo of the commerce stream
thus, the opportunity cost is rs 4 lakhs, or expected earnings from
commerce stream