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When one decision is made the next best alternative decision not selected is called?
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∙ 12y ago
Opportunity Cost
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When one decision is made the next best alternative not selected is called?
Opportunity Cost
The best alternative given up by a particular decision?
oppertunity cost
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.
How do you calculate the opportunity cost?
Opportunity Cost = Cost of Selected Alternative - Cost of Next Best Alternativelet us apply it:Answer.com wants to buy additional three websites - a search engine ($50), a social networking site ($80) and a gaming site ($100) but doesn't have enough money. after due considerations, answer.com bought a search engine but would love to have a gaming site more.Thus, opportunity cost can be calculated as:total items = 3 (search engine $50, social networking site $80 and gaming site $100).selected alternative = search engine $50next best alternative = gaming site $100Opportunity Cost = Cost of Selected Alternative - Cost of Next Best Alternative= 50 - 100 = -50..This implies that answer.com is $50 from away from having the opportunity to acquire a gaming site..
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
Principal of limiting factor in decision making?
what is the principle of limiting factor in decision making. The principle of the limiting factor states that by recognising and overcoming those factors that stand critically in the way of a goal, the best alternative course of action can be selected.
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.
The best alternative given up by a particular decision?
oppertunity cost
What are the Anticipated problems and solutions thaat will occur once the best alternative has been selected?
retewrtre
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.
The best alternative given up when making a certain decision?
Financial planning - A strategy to save for financial goals. Opportunity cost - The best alternative given up when making a certain decision. Risk aversion - Reluctance for taking chances. Utility - Personal satisfaction gained from consumption.
What are management's roles and responsibilities in decision implementation?
Management's roles and responsibilities in decision implementation is very critical in any organization. It is the duty of management to find practical ways of implementing decisions without interfering with normal output in an organization.
How do you calculate the opportunity cost?
Opportunity Cost = Cost of Selected Alternative - Cost of Next Best Alternativelet us apply it:Answer.com wants to buy additional three websites - a search engine ($50), a social networking site ($80) and a gaming site ($100) but doesn't have enough money. after due considerations, answer.com bought a search engine but would love to have a gaming site more.Thus, opportunity cost can be calculated as:total items = 3 (search engine $50, social networking site $80 and gaming site $100).selected alternative = search engine $50next best alternative = gaming site $100Opportunity Cost = Cost of Selected Alternative - Cost of Next Best Alternative= 50 - 100 = -50..This implies that answer.com is $50 from away from having the opportunity to acquire a gaming site..
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 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.
