Mr. Krishan works as support executive in a BPO at a salary of Rs 75,000 per month. He got a job offer from another company X at a salary of Rs 90,000 per month and one more from company Y at a salary of Rs 1,00,000. What is his opportunity cost of working as support executive in the BPO?

1,00,000

Opportunity cost refers to the value of next-best alternative when a decision is made. In the above case the next best option is working for company Y at Rs 1,00,000 per month.