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What is opportunity cost and can you provide an example of how it applies in decision-making?
Opportunity cost is the value of the next best alternative that is forgone when a decision is made. For example, if you choose to spend money on a vacation, the opportunity cost is the potential investment or savings you could have made with that money instead.
What is opportunity cost and can you provide an example to illustrate its concept?
Opportunity cost is the value of the next best alternative that is foregone when a decision is made. For example, if you choose to go to a concert instead of studying for an exam, the opportunity cost is the potential higher grade you could have achieved if you had studied instead.
What is the formula to calculate economic opportunity cost?
Opportunity Cost = Cost of Selected Alternative - Cost of Next Best Alternative If you want to buy a dress, purse, and earrings but you don't have enough money for all three, you ask yourself what do I need/want most? That is your "selected alternative. Then you ask yourself, what is the next thing I'd need/want if I could buy it? Then you would subtract that, "cost of next best alternative" from your original item, "cost of selected alternative." Dress= $100 Purse= $50 Earrings= $75 Opportunity cost of a dress (when you would ALSO want earrings (NBA), when having to choose over earrings or purse): 100-75= $25 $25 is the difference between the cost of the desired alternative and the cost of the next best alternative.
What is an example of opportunity cost in a business decision-making process?
An example of opportunity cost in a business decision-making process is when a company chooses to invest in one project over another, resulting in the potential loss of revenue or benefits that could have been gained from the alternative project.
What is an alternative sacrificed because of an economic decision?
cost
Is tofu an example of an alternative?
Yes, its an alternative to meat.
What is opportunity cost and can you provide an example of how it applies in decision-making?
Opportunity cost is the value of the next best alternative that is forgone when a decision is made. For example, if you choose to spend money on a vacation, the opportunity cost is the potential investment or savings you could have made with that money instead.
What is opportunity cost and can you provide an example to illustrate its concept?
Opportunity cost is the value of the next best alternative that is foregone when a decision is made. For example, if you choose to go to a concert instead of studying for an exam, the opportunity cost is the potential higher grade you could have achieved if you had studied instead.
How do you use alternative energy in a sentence?
We are interested in increasing our use of alternative energy, and have been considering getting solar panels for our house. Alternative energy tax credits may mean that the cost will be lower when we get a tax rebate after buying solar panels.
What is the formula to calculate economic opportunity cost?
Opportunity Cost = Cost of Selected Alternative - Cost of Next Best Alternative If you want to buy a dress, purse, and earrings but you don't have enough money for all three, you ask yourself what do I need/want most? That is your "selected alternative. Then you ask yourself, what is the next thing I'd need/want if I could buy it? Then you would subtract that, "cost of next best alternative" from your original item, "cost of selected alternative." Dress= $100 Purse= $50 Earrings= $75 Opportunity cost of a dress (when you would ALSO want earrings (NBA), when having to choose over earrings or purse): 100-75= $25 $25 is the difference between the cost of the desired alternative and the cost of the next best alternative.
What is a opprotunity cost?
The cost of an alternative that must be forgone in order to pursue a certain action. Put another way, the benefits you could have received by taking an alternative action. For example if you are doing work already and earning 10 and you have a new opportunity to start new project with return of 11 then 10 already you are earning is your opportunity cost to start new project.
What is an example of opportunity cost in a business decision-making process?
An example of opportunity cost in a business decision-making process is when a company chooses to invest in one project over another, resulting in the potential loss of revenue or benefits that could have been gained from the alternative project.
What is an example of complementary and alternative medicine?
Prayer
What is an alternative sacrificed because of an economic decision?
cost
What do economists call the next best alternative?
Economists call opportunity cost the next best alternative that has been given up. This is the cost of forgoing something and picking an alternative like using college fees to start a business.
What is alternative cost in economics?
According to the authors of the textbook Economics U$A, Opportunity Cost or Alternative Cost is the value of what certain resources could have produced have they been used in the best alternative way. Since economic resources are scarce, only a limited amount of goods and services can be produced from them and there arise the necessity of choice.
Is the cost of a new factory an example of a fixed cost?
yes it is an example of fixed cost
