A student has N30 00 with which to buy a ruler ... - JAMB Economics 2002 Question
A student has N30.00 with which to buy a ruler costing N18.00 and an exercise book costing N25.00. If he buys the exercise book, his opportunity cost is?
A
the ruler
B
the exercise book
C
N25.00
D
18.00
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Correct Option: A
Opportunity cost is the value of the next best alternative foregone. In this scenario, the student only has N30.00. If he buys the exercise book for N25.00, he will have N5.00 left. He cannot afford the ruler, which costs N18.00. Therefore, the opportunity cost of buying the exercise book is the ruler because he had to give up the opportunity to buy the ruler.
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