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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).
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How is the concept opportunity cost relevant to the economy of West African countries?
How is the concept of opportunity cost relevant to the economy of west African countries
How is the concept of opportunity relevant to the economy of west African countries?
How is the concept of opportunity cost relevant to the economy of west African countries
Explain with the help of production possibility diagram the concept of opportunity cost?
Opportunity cost is the amount you might lose if you do not take the opportunity. You can write out the graph or find examples online.
A popular modle used to illustrate the concept of opportunity cost is?
production possibility frontier
A popular model used to illustrate the concept of opportunity cost is?
The Production Possibilities frontier/curve
How is the concept opportunity cost relevant to the economy of West African countries?
How is the concept of opportunity cost relevant to the economy of west African countries
Concept of opportunity cost and its importance?
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How is the concept of opportunity relevant to the economy of west African countries?
How is the concept of opportunity cost relevant to the economy of west African countries
How is the concept of opportunity cost relevant to the economy of west African countries?
How is the concept of opportunity cost relevant to the economy of west African countries
Why is the cost of capital concept so important?
Cost of capital is cost of debt and cost of equity. The concept of cost of capital is important as it depicts the opportunity cost of making a specific investment.
Explain with the help of production possibility diagram the concept of opportunity cost?
Opportunity cost is the amount you might lose if you do not take the opportunity. You can write out the graph or find examples online.
A popular modle used to illustrate the concept of opportunity cost is?
production possibility frontier
A popular model used to illustrate the concept of opportunity cost is?
The Production Possibilities frontier/curve
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.
Can you explain the concept of opportunity cost using a money analogy?
Opportunity cost is like choosing between spending money on a new phone or a vacation. If you pick the phone, the cost is not just the price of the phone, but also the missed opportunity to go on vacation. So, the opportunity cost is the value of the next best alternative that you give up when making a decision.
Buying only one instead of two sodas during lunchtime describes what concept?
Opportunity cost - the cost of forgoing the opportunity to purchase a second soda in favor of using that money for something else.
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.
