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The opportunity cost of a certain good is the cost of the next best good that you are forgoing. It is NOT a sum of all the other possibilities. It is just the cost of the next best alternative.
For example: The opportunity cost of going to college is the money that you could have earned in a job. Say you spend $80,000 to go to college for four years, but if you had gotten a job right out of high school, you could have made $15,000 a year. The opportunity cost of attending college is the $60,000 you would have earned if you had gotten the job right out of high school.
What else can I help you with?
What is one country of comparative advantage in the production of a certain good?
It has a lower opportunity cost for production of that good.
Why is the opportunity cost of decision always less than the cost of the chosen good or service?
Why is the opportunity cost of a decision always less than the cost of the chosen good or service?
Where is opportunity cost on a production possibility frontier?
The opportunity cost would be the slope of the PPF. So the opportunity cost of the good on the x axis is in terms of the good on the y axis. This is why we would say a PPF demonstrates increasing marginal opportunity cost when it is curved outward
Why do opportunity cost increase as society produces more of a good?
Because when one produces one product, the opportunity cost of the other product increases. The concave represents the increasing opportunity cost with the production of a good.
What is the opportunity cost of doing or getting something?
The opportunity cost of doing or getting something is the value of the next best alternative that is foregone as a result of choosing that particular option.
What is one country of comparative advantage in the production of a certain good?
It has a lower opportunity cost for production of that good.
Why is the opportunity cost of decision always less than the cost of the chosen good or service?
Why is the opportunity cost of a decision always less than the cost of the chosen good or service?
Where is opportunity cost on a production possibility frontier?
The opportunity cost would be the slope of the PPF. So the opportunity cost of the good on the x axis is in terms of the good on the y axis. This is why we would say a PPF demonstrates increasing marginal opportunity cost when it is curved outward
Why do opportunity cost increase as society produces more of a good?
Because when one produces one product, the opportunity cost of the other product increases. The concave represents the increasing opportunity cost with the production of a good.
What is the opportunity cost of doing or getting something?
The opportunity cost of doing or getting something is the value of the next best alternative that is foregone as a result of choosing that particular option.
What is the opportunity cost of choosing a particular option?
The opportunity cost of choosing a particular option is the value of the next best alternative that is forgone as a result of making that choice. It represents what you give up in order to pursue a certain course of action.
How can one determine opportunity cost from a graph?
To determine opportunity cost from a graph, you can look at the slope of the graph. The opportunity cost is represented by the ratio of the units of one good that must be given up to produce more units of another good. The steeper the slope of the graph, the higher the opportunity cost.
How can one determine the opportunity cost from a graph?
To determine the opportunity cost from a graph, you can look at the slope of the graph's line. The opportunity cost is represented by the ratio of the units of one good that must be given up to produce more units of another good. The steeper the slope of the graph, the higher the opportunity cost.
Is a higher or lower opportunity cost better when making decisions?
A lower opportunity cost is generally better when making decisions because it means sacrificing less to pursue a particular choice.
How does opportunity cost affect choices?
Opportunity cost refers to the highest-valued option forgone.When one particular choice's cost increases, people have lower incentive to choose that choice as people tend to choose a least-cost option.
What is opportunity cost and opportunity benefit?
Opportunity cost is the cost that an opportunity presents. The opportunity benefit is the benefit of the opportunity that is being presented.
Why does the opportunity cost of a good rise as society produces more of it?
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