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When describing the opportunity cost of two producers, economists use the term "comparative advantage." This refers to the ability of a producer to create a good or service at a lower opportunity cost than another producer. By specializing in the production of goods where they hold a comparative advantage, both producers can benefit from trade, leading to increased overall efficiency and resource allocation.
What else can I help you with?
What are economists referring to when they talk about cost?
Opportunity Cost
What do economists the next best alternative that had to be given up for the one chosen?
opportunity cost
Why do economists measure the cost of things when opportunity cost is what you actually are considering we when decide whether or not to purchase something?
it is easier for economists to measure "cost" than "opportunity cost"(because people's tastes are different and changeable)
Why do economists bother with implicit cost?
Because opportunity cost doesn't show up as an accounting expense.
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 are economists referring to when they talk about cost?
Opportunity Cost
What do economists the next best alternative that had to be given up for the one chosen?
opportunity cost
Why do economists measure the cost of things when opportunity cost is what you actually are considering we when decide whether or not to purchase something?
it is easier for economists to measure "cost" than "opportunity cost"(because people's tastes are different and changeable)
Why do economists bother with implicit cost?
Because opportunity cost doesn't show up as an accounting expense.
What do economists call the next best alternative that had to be given up for the chosen one?
opportunity cost
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 did economists measure and define trade-offs as?
When economists defined trade-off, they measured opportunity cost. Trade-off is letting go something of value in exchanging for something else that still has some value.
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 the ability to produce a good or service at a lower opportunity cost than other producers incur is known as?
Comparative Advantage.
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
Why do you believe that economists focus on coast?
Economists focus on cost because it plays a crucial role in decision-making and resource allocation. Understanding costs helps determine the feasibility and efficiency of various economic activities, guiding businesses and policymakers in optimizing production and consumption. Additionally, analyzing costs allows economists to assess trade-offs and opportunity costs, which are essential for evaluating the potential benefits of different choices. Overall, cost considerations are fundamental to the principles of economics and market functioning.
What calculates the opportunity cost?
Opportunity cost is something for the next porpose.
