Johannes is currently working as a

computer programmer for a large corporation and earns R500 000 per year. He

is considering starting his own business and is currently estimating the

opportunity cost of doing so. Should he include the loss of his current income

as part of the opportunity cost to start his own business?

It is Saturday, and Peter decides to

attend a soccer league match that costs him R250 for the ticket and takes up two

hours of his time. He is supposed to mow the lawn but decides to hire someone

to do it at R50 per hour while he is at the soccer match. It will take two

hours to mow the lawn.

His opportunity cost to attend the

soccer league match is as follows: