Practice Me – 2:

If today your class is cancelled! You have 3 options before you:

Option 1: Go to the library and study - costs nothing and you value it say at Rs.100,
Option 2: Go to a movie, which costs you Rs 50, and which you value at Rs 300, or
Option 3: Have lunch with a friend, which costs you Rs 100 and which you actually value at Rs.
55.
What is the opportunity cost of having lunch with her friend?
Calculate the net benefit of each one of these options. We'll take into account the benefit, we'll
take into account the cost.