Define the term opportunity cost concept
Define the term opportunity cost concept.
Expert
Opportunity Cost: It refers to the cost of foregoing or providing up an opportunity. This is the cost of the next best option. It shows the income of benefit foregone since an exact course of action has been considered. Like Adam smith observed, when a hunter can bag a deer or a beaver within the single day, the cost of deer is a beaver and the cost of beaver is like a deer. A man that who marries a girl is foregoing the opportunity of marrying other girl. A film actress can either do modeling work or act in films. She can’t do the jobs at the same time both. Her acting within the film results in the loss of an opportunity of doing modeling work. Similarly, if an old building is proposed to be utilized for a business, where rent of the building is the opportunity cost. This cost concept was first developed through an Austrian economist, Wieser.
This cost concept plays a significant role in managerial decisions. This is useful in determination of relative prices of various goods. This is also useful in fixing the price of an output factor. Above everything, this help in the best allocation of available resources.
When family incomes within the United States raised sharply and therefore, sales of cashmere sweaters improved enormously, in that case cashmere sweaters are: (1) luxury goods. (2) preferred to wool or cotton sweaters. (3) inferior goods. (4) prestige goods. (5) norma
Suppose that the auto started began at the intersection of S0 and D0, and then Congress passed a main personal income tax cut. So, how will it affect the auto market?: (w) No change. (x) Demand shifts to D2. (y) Demand shifts to D
Illustrates the relation between Average Revenue, Total Revenue and Marginal Revenue?
A cartel tends to be more successful mainly while this can stop: (1) cheating between its members. (2) increases in the demand for its product. (3) joint profit maximization. (4) international trade. (5) an increase in the price of its product. <
Formulate the Cross Elasticity of demand?
dear Please read carefully about in structure and requirement of the assessment. I need quality work with academic writing with less than 5% similaraies and make sure if any studens ask same assessment to avoid plagiarism
Firms tend to offer wages which most greatly exceed the wages which workers would earn elsewhere to workers who have: (1) profit-sharing plans. (2) specific training. (3) prenuptial agreements. (4) non-compete clauses in their work contracts. (5) general training.
When this purely competitive labor market is firstly in equilibrium at D0L , S0L , an increase into labor force participation rates will result within equilibrium being attained at: (w) D0L , S0L . (x) D
Substituting sophisticated machinery for human labor is termed as: (1) automation. (2) industrial sabotage. (3) kinetic engineering. (4) outsourcing. (5) robotics. Hello guys I want your advice. Please recommend some views for abov
Illustrates the role of cost in pricing?
18,76,764
1933924 Asked
3,689
Active Tutors
1456765
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!