Suppose after pursuing MBA you are confronted by two trade-of, One, to start your own business and earn K 100, 000 per annum or join a company and get K120, 000 per annum.

So, if you commence your own business you will earn K100, 000 per year, but you will not get K120, 000 since the twooptions are mutually exclusive.

Question: Calculate the opportunity cost of this tradeoff of starting your own business, further, what do you call the gain you would obtain if you joined the company instead of opening your own business?