To make it different from trade-off
opportunity cost can have a value, especially if you are looking at such things as the college/job thing. If you go to college rather than take a job, your opportunity cost is the amount of money you lose from not working at the job. Opportunity cost does not always have to have a value. Again with the college/job example, if you take a job rather than go to college, your opportunity cost can be things like more education and college memories, etc. Opportunity cost is simply "what you give up". Therefore, if you are giving up money, your opportunity cost has a monetary value. If you are giving up education or experience or the like, your opportunity cost technically has no monetary value, but you are still giving something up. Hope that answers the question.
No. Marginal cost is the added cost of producing one more of something. This type of cost is real and concrete; it actually has monetary value. Opportunity cost is more theoretical. It measures the amount of money / products that could have been made in places other than the job you are currently in. This is very similar to implicit costs.
Opportunity cost is the cost that an opportunity presents. The opportunity benefit is the benefit of the opportunity that is being presented.
Opportunity cost is a similar concept to cost of capital, except that it suggests that "your money can only be spent once." The opportunity cost of a purchase is the loss of potential value (monetary or otherwise) incurred because one item is purchased rather than another. For example: the opportunity cost of buying a coat might be the value of having new shoes instead. In supply and demand, the question is of capital and equipment utilization -- how much of other products must you choose not to make in order to make a unit of a product? For example: how many caps will be made instead of gloves, where the opportunity cost is the value of the gloves that will not be made (the choice that was not taken).
To make it different from trade-off
opportunity cost can have a value, especially if you are looking at such things as the college/job thing. If you go to college rather than take a job, your opportunity cost is the amount of money you lose from not working at the job. Opportunity cost does not always have to have a value. Again with the college/job example, if you take a job rather than go to college, your opportunity cost can be things like more education and college memories, etc. Opportunity cost is simply "what you give up". Therefore, if you are giving up money, your opportunity cost has a monetary value. If you are giving up education or experience or the like, your opportunity cost technically has no monetary value, but you are still giving something up. Hope that answers the question.
relevant cost may include fixed avoidable costs
Importance of Opportunity cost to an individual are : 1. It influences the individuals household in decision making among his numerous wants. 2. It helps the individual to know how to maximise his satisfaction from his limited resources through drawing scale of preference. Importance of Opportunity Cost to Firms 1. It helps a firm to decide to use labour intensive instead of capital intensive method to achieve the highest output. Importance of Opportunity Cost to Government: 1. It enables the government to maximize the welfare of its citizen by choosing the right projects it should spend its scarce resources on.
What you sacrifice for a decision is one of the non-monetary costs of many choices
No. Marginal cost is the added cost of producing one more of something. This type of cost is real and concrete; it actually has monetary value. Opportunity cost is more theoretical. It measures the amount of money / products that could have been made in places other than the job you are currently in. This is very similar to implicit costs.
Opportunity cost is the cost that an opportunity presents. The opportunity benefit is the benefit of the opportunity that is being presented.
Opportunity cost is a similar concept to cost of capital, except that it suggests that "your money can only be spent once." The opportunity cost of a purchase is the loss of potential value (monetary or otherwise) incurred because one item is purchased rather than another. For example: the opportunity cost of buying a coat might be the value of having new shoes instead. In supply and demand, the question is of capital and equipment utilization -- how much of other products must you choose not to make in order to make a unit of a product? For example: how many caps will be made instead of gloves, where the opportunity cost is the value of the gloves that will not be made (the choice that was not taken).
The opportunity cost is defined as alternative cost - costs measured in output of products and services forgone.It can't be defined as variable cost. In the simple formula p = 2q + 100, we can say that 2 is the variable cost. In other words: it's not fixed like the 100.Opportunity costs are not restricted to financial or monetary costs though. The real costs of output forgone (e.g. when choosing between a number of products like shotguns and bananas), lost time / pleasure, or any other benefit that provides benefit should also be considered opportunity costs. Therefore real costs are part of opportunity costs.
Monetary cost is the cost associated with borrowing money from open market that is called interest on debt as well. Example: If company take loan from bank of 1000 on 10% then 10% of 10000, 1000 is the monetary cost or cost of debt
Opportunity cost means that there is an opportunity to get something in a lower cost. __by Alondra Rico
It would be helpful to know what the decision is to know what the benefits and opportunity of the decision are. It is important to include this information.