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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.
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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.
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.
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.
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.
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.
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.
When the benefit of one particular use of a resource is greater than the opportunity cost?
Being used efficiently
Why does the opportunity cost of a good rise as society produces more of it?
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What does the word opportunity cost means?
Opportunity cost means that there is an opportunity to get something in a lower cost. __by Alondra Rico
When the benefit of one particular use of a resource is greater then the opportunity cost than that resource is which of the following?
being used efficiently <3
What calculates the opportunity cost?
Opportunity cost is something for the next porpose.
What The best alternative given up by a particular decision.?
Opportunity cost is the phrase used to describe the best alternative given up by a particular decision. The term is often associated with Economics.
What is The best alternative given up by a particular decision?
Opportunity cost is the phrase used to describe the best alternative given up by a particular decision. The term is often associated with economics.
