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What is scarcity and how does scarcity influence opportunity cost?
Wiki User
∙ 12y ago
Scarcity is a situation where there is not enough to satisfy everyone's wants.
Wiki User
∙ 12y ago
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What are the 3 main elements of economic problem?
Scarcity, choice, opportunity cost
What are the basic economic concepts illustrated by a PPC?
scarcity,choice and opportunity cost
Can opportunity cost be zero?
Opportunity cost can be zero if there are no scarcity in goods and services and resources used to produce such commodities that can lead consumers to make a choice to fulfill their wants
What is the difference between real cost and opportunity cost?
Actual cost (real cost): Are those which are actually incurred by the firm in payment for labor, material, plant, building, machinery, equipment ,etc. Opportunity cost: The opportunity cost is the opportunity lost. An opportunity to make income is lost because of scarcity of resources like land, labor, capital etc., or the making of one decision over another decision.
How do you analyze a project as oppourtunity cost?
Opportunity cost - This refers to selecting a project over another due to the scarcity of resources. In other words, by spending this rupee on this project, you are passing on the opportunity to spend this rupee on another project. How big an opportunity are you missing? The smaller the opportunity cost, the better it is.Opportunity Cost is a technique that is used in project selection
How are the concepts of scarcity choice and opportunity cost related?
No, scarcity, choice and opportunity are not related to cost. All of these aspects of business are related to availability. Sometimes, costs plays a role though.
What are the 3 main elements of economic problem?
Scarcity, choice, opportunity cost
What are the basic economic concepts illustrated by a PPC?
scarcity,choice and opportunity cost
Can opportunity cost be zero?
Opportunity cost can be zero if there are no scarcity in goods and services and resources used to produce such commodities that can lead consumers to make a choice to fulfill their wants
Definition of scarcity and opportunity cost by Bernardo Villegas?
Opportunity cost refers to the economic benefit forgone by using a resource for one purpose rather than another.
What role do scarcity and opportunity cost play in making management decisions?
If you do not have a resource, you will have to make different decisions. If you have an opportunity come up, you may have to change your plan.
What is the difference between real cost and opportunity cost?
Actual cost (real cost): Are those which are actually incurred by the firm in payment for labor, material, plant, building, machinery, equipment ,etc. Opportunity cost: The opportunity cost is the opportunity lost. An opportunity to make income is lost because of scarcity of resources like land, labor, capital etc., or the making of one decision over another decision.
How do you analyze a project as oppourtunity cost?
Opportunity cost - This refers to selecting a project over another due to the scarcity of resources. In other words, by spending this rupee on this project, you are passing on the opportunity to spend this rupee on another project. How big an opportunity are you missing? The smaller the opportunity cost, the better it is.Opportunity Cost is a technique that is used in project selection
How scarcity force society to incur opportunity cost?
This is the basic economic problem: Infinite Wants--> Finite Resources--> Scarcity-->Choice--> Opportunity costs So the problem is: How can we allocate resources efficiently, knowing that they are an infinite number of wants (but fewer needs) and there are only a limited amount of resources, which are scarce. Because there is scarcity (deficit/lack of supply of resources), people are left with a choice: That choice is an opportunity cost. Opportunity costs is the cost/disadvantage that occurs from choosing the next-best-alternative because of scarcity. an example: the government wants to build a new highway, but ther land is scarce( there is not enough land), and so, the opportunity cost is to build a new public school. The opportunity cost is the efficiency and accesibilty of transportation. The next-best-alternative is usually chweaper but is in less quality/quantity than the initial good or service. So basically, because of scarcity, consuimers and producers have to make a choice: whose wants need to be satisfied? what is more important?
Would you have to make choices if you had unlimited resources?
unlimited resources would mean that scarcity does not exist. And if scarcity does not exist, then of course, there's no opportunity cost. we can buy anything we want with enough income.
Society's production possibilities frontier is based on?
simplifying assumptions, but is still useful for illustrating scarcity, opportunity cost, and economic growth.
When you are thinking on the margin the which factor should most influence your decision is?
opportunity cost
