--%>
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 : Reason of Economic problem Why an

    Why an economic problem does arise? Answer: It arises due to following reasons: A) Shortage of resources. B) Alternative utilizations of resources. C) Limitless wants and limited resources.

    		•
  • Q : Distinguish between allocative

    Distinguish between allocative efficiency and productive efficiency. Give an illustration of achieving productive, but not allocative, efficiency?

    		•
  • Q : How do households dispose of their

    How do households dispose of their income?

    		•
  • Q : Production possibility frontier

    Question: Scenario: You have been hired as the economics adviser for the newly elected State Premier. On your first day, the Premier introduces you to the new Minister for Health

    		•
  • Q : Comment surpluses drives price

    surpluses drives price down,shortages drive up

    		•
  • Q : Perfect Competition leads to Allocative

    A perfectly competitive industry achieves allocative efficiency since: w) goods and services are produced at the lowest possible cost. x) services and goods are produced up to the point where the last unit gives a marginal benefit to consumers equivalent to the margin

    		•
  • Q : Technological advances in producing

    When given resources can now produce additional goods than was previously probable, then there have been a: (1) Stock market boom. (2) Competitive spurt which shrinks entrepreneurial gain. (3) Concavity reversal in the production possibilities frontier. (4) Bigger rel

    		•
  • Q : Larger amount is actually purchased at

    Critically evaluate:  “In comparing the two equilibrium positions, it note that a larger amount is actually purchased at a higher price. This disprove the law of demand.”

    		•
  • Q : Creating a Business Report Business

    Business Report Objectives This assessment item relat

    		•
  • Q : When productive resources are utilized

    While productive resources are utilized efficiently: (w) prices greatly exceed production costs for current outputs. (x) opportunity costs are at their minimums for all goods. (y) domestic production exceeds the value of foreign output. (z) the value

    		•