As the manager of financial planning business you have two financial planners, Phil and Francis. In an hour, Phil can manufacture either one financial statement or answer 8 phone calls, where as Francis can either make 4 financial statements or answer 10 phone calls. Does either person have the absolute advantage in making both products? Must these two planners be self-sufficient (each making statements and answering phones) or specialize? Make sure to illustrate your work
We make selections as consumers every day. Opportunity cost is explained as person's "next best alternative" or "the cost of what you give up when you make choice."
Think of recent decision you made concerning career. (going to college online) What was opportunity cost for making that selection? What was your "next best alternative"?