--%>
Assignment Help - homework help

Opportunity Cost

Opportunity Cost:

Whenever you select a particular alternative, the next best alternative should be given up. For illustration, when you desire to watch cricket highlights in T.V., you should give up an additional hour study. The selection of watching cricket in T.V. outcomes in the loss of the next best option of an extra hour study rather. Therefore by watching T.V., you have forgone the chance of scoring an extra five or ten marks in exam.

Therefore the “opportunity cost” is the cost of somewhat in terms of an opportunity forgone (and the merits that could be acknowledged from that opportunity). In another words, the opportunity cost of an action is the value of subsequently best alternative forgone. The consideration of opportunity costs is one of the key differences among the notions of ‘economic cost’ and ‘accounting cost’. Choices are generally made on the basis of opportunity cost.

   Related Questions in Business Economics

  • Q : Explain how women expanded production

    Explain how women expanded production possibilities?

    		•
  • Q : Individuals self-interests and broader

    A natural harmony among individuals serving their own self-interests and the broader interests of society was the main theme of the theories of __________, although this concept was not accepted through _________. Determine the correct answer from given options: (w) K

    		•
  • Q : Categorization of economists for buying

    Assume that you bought a ton of gold in Santiago, and Chile for $450 per ounce and immediately sold all of this in Antwerp, Belgium for $480 per ounce. Therefore economists would categorize your movement as: (i) arbitrage. (ii) scalping. (iii) screening. (iv) speculat

    		•
  • Q : Introduction of the term Control Factor

    Give a brief introduction of the term Control Factor?

    		•
  • Q : Calculate Equilibrium Quantity and Price

    1. The owner of a firm calculates that next year's profit will be $1,000. Each successive year profit will increase by 10% (i.e. year 2: $1100; year 3: $1210 and so on.) At the end of the 5th year the firm could be sold for $20,000. A) if the appropriate di

    		•
  • Q : Higher opportunity costs of attendance

    Economics professors would attribute students’ higher rates of attendance on days while examinations are administered to the: (w) intensified needs to learn valuable material. (x) higher opportunity costs of missing set relative to other schedul

    		•
  • Q : Illustrate Economics for citizenship

    Illustrate Economics for citizenship?

    		•
  • Q : Illustrate a fundamental characteristic

    Illustrate a fundamental characteristic of demand behavior?

    		•
  • Q : Define the terms Plant Define the

    Define the following terms?

    		•
  • Q : Problem on productive contribution

    Suppositions underpinning simple production possibilities frontier models don’t comprise a need that: (i) Net resources are fixed. (ii) All resources are efficiently employed. (iii) Technology is steady. (iv) Resource owners are paid according t

    		•