Question

You plan to attend the NCC Camp for two months. If you do, you won't be able to take your usual part time job that pays Rs.$10,000$ for two months and you won't be able to live at home for free. The cost of your NCC Camp includes:
Living expenses Rs.$2,000$, costume and stationery expenses Rs.$3,000$ and study materials Rs.$1,000$. Calculate the marginal opportunity cost of joining the NCC Camp.

Answer 1

Marginal opportunity cost
$=$ Loss of your two months pay $+$ Cost of your attending the NCC Camp (Living expenses $+$ Expenses on costume and stationery $+$ Expenses on study materials)

$=Rs.10,000+(Rs.2,000+Rs.3,000+Rs.1,000)$
$=$ $Rs.10,000+Rs.6,000=Rs.16,000$
Here, marginal opportunity cost of your joining the NCC Camp is $Rs.16,000$, because opportunity cost is equal to the loss incurred (or sacrifice made) when the existing opportunity is foregone in favour of the other.