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What is the value of the next best alternative that you did not choose?
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What is the formula to calculate economic opportunity cost?
Opportunity Cost = Cost of Selected Alternative - Cost of Next Best Alternative If you want to buy a dress, purse, and earrings but you don't have enough money for all three, you ask yourself what do I need/want most? That is your "selected alternative. Then you ask yourself, what is the next thing I'd need/want if I could buy it? Then you would subtract that, "cost of next best alternative" from your original item, "cost of selected alternative." Dress= $100 Purse= $50 Earrings= $75 Opportunity cost of a dress (when you would ALSO want earrings (NBA), when having to choose over earrings or purse): 100-75= $25 $25 is the difference between the cost of the desired alternative and the cost of the next best alternative.
What do economists call the next best alternative?
Economists call opportunity cost the next best alternative that has been given up. This is the cost of forgoing something and picking an alternative like using college fees to start a business.
What is the nature of opportunity cost?
In economics, the opportunity cost is the next best alternative forgone in a decision. The next best alternative is determined by the values of the consumer making the decision.For example: a consumer must to choose between going to the beach, going to the cinema, or staying at home for the day (they can only do one of these for the day). The consumer values the options in this order (from most-desired to least-desired): 1) going to the beach, 2) going to the cinema, 3) staying at home. If the consumer decides to go to the beach, the opportunity cost is going to the cinema, as this is the next best alternative for the consumer. Staying at home is not the opportunity cost, as it is not the next best alternative.There is only one opportunity cost in a decision; this is the next best alternative. All other less-desirable alternatives are not considered opportunity costs in a decision.
When one decision is made the next best alternative not selected is called?
Opportunity Cost
Which of these explains the term opportunity cost?
The value of the next best alternative given when a chose is made.
The value of the next best alternative given up to obtain an item is called?
Oppurtnity cost
The item or value that is lost when someone makes an economic decision, otherwise known as the "next best alternative" to the choice made?
I think I get a sout out of the house for
What is the formula to calculate economic opportunity cost?
Opportunity Cost = Cost of Selected Alternative - Cost of Next Best Alternative If you want to buy a dress, purse, and earrings but you don't have enough money for all three, you ask yourself what do I need/want most? That is your "selected alternative. Then you ask yourself, what is the next thing I'd need/want if I could buy it? Then you would subtract that, "cost of next best alternative" from your original item, "cost of selected alternative." Dress= $100 Purse= $50 Earrings= $75 Opportunity cost of a dress (when you would ALSO want earrings (NBA), when having to choose over earrings or purse): 100-75= $25 $25 is the difference between the cost of the desired alternative and the cost of the next best alternative.
What do economists call the next best alternative?
Economists call opportunity cost the next best alternative that has been given up. This is the cost of forgoing something and picking an alternative like using college fees to start a business.
What is the proxy for Canada?
The term "Proxy" refers to next best option. hence proxy is the available next best alternative
What is the nature of opportunity cost?
In economics, the opportunity cost is the next best alternative forgone in a decision. The next best alternative is determined by the values of the consumer making the decision.For example: a consumer must to choose between going to the beach, going to the cinema, or staying at home for the day (they can only do one of these for the day). The consumer values the options in this order (from most-desired to least-desired): 1) going to the beach, 2) going to the cinema, 3) staying at home. If the consumer decides to go to the beach, the opportunity cost is going to the cinema, as this is the next best alternative for the consumer. Staying at home is not the opportunity cost, as it is not the next best alternative.There is only one opportunity cost in a decision; this is the next best alternative. All other less-desirable alternatives are not considered opportunity costs in a decision.
What is a synonym for the phrase 'next best alternative'?
A synonym for the phrase 'next best phrase' is very simple you if you want a synonym phrase then the proper answer would be take the middle word which in this case would be 'best' and switch the words around and find a synonm for alternative which would be thing so your synonym would be 'best next thing'
When one decision is made the next best alternative not selected is called?
Opportunity Cost
Define the term opportunity cost and explain its potential positive and negative effects on the economy?
The value of the next-best alternative is called opportunity cost. The opportunity cost of any action is the value of what is given up--the next-highest-ranked alternative--because a choice was made. When you study one more hour, there may be many alternatives available for the use of that hour, but assume that you can do only one other thing in that hour--your next-highest-ranked alternative. What is important is the choice that you would have made if you hadn't studied one more hour. Your opportunity cost is the next-highest-ranked alternative, not all alternatives. In economics, cost is always a forgone opportunity.
Which of these explains the term opportunity cost?
The value of the next best alternative given when a chose is made.
When one decision is made the next best alternative decision not selected is called?
Opportunity Cost
What do economits call the next best alternative that to be given up for the one chosen?
opportunity cost
