Want this question answered?
Everything has its opportunity cost you just have to think .
Wages/utility gained from working.
If a firm over invest in net working capital, it incurs cost in the form of opportunity cost.
Opportunity cost is the cost that an opportunity presents. The opportunity benefit is the benefit of the opportunity that is being presented.
opportunity cost can have a value, especially if you are looking at such things as the college/job thing. If you go to college rather than take a job, your opportunity cost is the amount of money you lose from not working at the job. Opportunity cost does not always have to have a value. Again with the college/job example, if you take a job rather than go to college, your opportunity cost can be things like more education and college memories, etc. Opportunity cost is simply "what you give up". Therefore, if you are giving up money, your opportunity cost has a monetary value. If you are giving up education or experience or the like, your opportunity cost technically has no monetary value, but you are still giving something up. Hope that answers the question.
Everything has its opportunity cost you just have to think .
Wages/utility gained from working.
If a firm over invest in net working capital, it incurs cost in the form of opportunity cost.
The opportunity cost is the labor and resources that go into producing 500 guns and 30 tv sets that could have been used elsewhere. The "elsewhere" is the opportunity cost. For example, if you make $10/hr working and you decide to sit home watching tv for 2 hours instead of working, your opportunity cost is $20.
Opportunity cost is the cost that an opportunity presents. The opportunity benefit is the benefit of the opportunity that is being presented.
Cost that you have to bear to choose between different alternatives is called opportunity cost so if somebody is working for monthly salary of 10000 provided with a new project which is earning 15000 then 10000 is the opportunity cost for starting new project.
opportunity cost can have a value, especially if you are looking at such things as the college/job thing. If you go to college rather than take a job, your opportunity cost is the amount of money you lose from not working at the job. Opportunity cost does not always have to have a value. Again with the college/job example, if you take a job rather than go to college, your opportunity cost can be things like more education and college memories, etc. Opportunity cost is simply "what you give up". Therefore, if you are giving up money, your opportunity cost has a monetary value. If you are giving up education or experience or the like, your opportunity cost technically has no monetary value, but you are still giving something up. Hope that answers the question.
Opportunity cost means that there is an opportunity to get something in a lower cost. __by Alondra Rico
Opportunity cost is something for the next porpose.
Opportunity Cost: if you are doing any work and getting money at 10$ per hour for seven hour then if you stop working and start watching cricket match then you lost those 70 $ by watching that cricket match so at that moment opportunity cost of watching match is 70 $ for you which you lost due to cricket match.
Yes, opportunity cost is a relevant cost because it can be used in something more productive.
Opportunity cost is what you give up in order to get something else. Paying money is the opportunity cost for ice cream for example.