# Opportunity cost of a decision

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Suppose you arrive at a store expecting to pay $100 for an item but learn that a store 2 miles away is charging $50 for it. How does the decision benefit you? What is the opportunity cost of this decision? Now suppose you arrive at a store expecting to pay $6000 for an item but discover that it costs $5950 at the other store. Do you make the same decision as before? Explain why.

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Suppose you arrive at a store expecting to pay $100 for an item but learn that a store 2 miles away is charging $50 for it. How does the decision benefit you? What is the opportunity cost of this decision? Now suppose you arrive at a store expecting to pay $6000 for an item but discover that it costs $5950 at the other store. Do you make the same decision as before? Explain why.

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The decision benefits me by 50 dollars on the purchase of this product. However, I will have to compare the benefit with the opportunity cost of travelling 2 miles and ...

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- BCom, SGTB Khalsa College, University of Delhi
- MBA, Rochester Institute of Technology

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