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Give a example of an opportunity cost that an accountant might not count as a costwhy would the accountant ignore this cost?
An opportunity cost where money does not change hands does not count as a cost. An example of this is the owner's opportunity cost for an alternate employment, since money does not change hands.
What do you understand by the term opportunity cost?
Opportunity cost is what you give up in order to get something else. Paying money is the opportunity cost for ice cream for example.
What are the examples of opportunity cost in a business?
An opportunity cost means that, in order to do one thing, you must give up something else (those something else's are the opportunity costs). An example of an opportunity cost would be the large amount of money that would need to be invested in order for a company to make itself more environmentally-friendly (like installing solar panels).
What is opportunity cost and can you provide an example of how it applies in decision-making?
Opportunity cost is the value of the next best alternative that is forgone when a decision is made. For example, if you choose to spend money on a vacation, the opportunity cost is the potential investment or savings you could have made with that money instead.
Where is opportunity cost on a production possibility frontier?
The opportunity cost would be the slope of the PPF. So the opportunity cost of the good on the x axis is in terms of the good on the y axis. This is why we would say a PPF demonstrates increasing marginal opportunity cost when it is curved outward
Give a example of an opportunity cost that an accountant might not count as a costwhy would the accountant ignore this cost?
An opportunity cost where money does not change hands does not count as a cost. An example of this is the owner's opportunity cost for an alternate employment, since money does not change hands.
What do you understand by the term opportunity cost?
Opportunity cost is what you give up in order to get something else. Paying money is the opportunity cost for ice cream for example.
What are the examples of opportunity cost in a business?
An opportunity cost means that, in order to do one thing, you must give up something else (those something else's are the opportunity costs). An example of an opportunity cost would be the large amount of money that would need to be invested in order for a company to make itself more environmentally-friendly (like installing solar panels).
Example of opportunity cost and resources?
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What is opportunity cost and can you provide an example of how it applies in decision-making?
Opportunity cost is the value of the next best alternative that is forgone when a decision is made. For example, if you choose to spend money on a vacation, the opportunity cost is the potential investment or savings you could have made with that money instead.
Where is opportunity cost on a production possibility frontier?
The opportunity cost would be the slope of the PPF. So the opportunity cost of the good on the x axis is in terms of the good on the y axis. This is why we would say a PPF demonstrates increasing marginal opportunity cost when it is curved outward
Increasing opportunity cost graph?
There are many ways in which you can show increasing opportunity cost on a graph. You could show it in comparison to satisfaction for example.
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.
The earnings that parents forgo to raise children are an example of?
opportunity cost
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.
Is it possible to incur opportunity cost without spending any money?
Opportunity cost can also deal with time. For example, shopping at Wal-mart versus shopping at sears, Khols, and giant eagle will lower your opportunity cost. At Wal-mart you'll be able to find many of the items you'd typically be looking for when shopping (whether they are better or not is up to you). My point is that from this example, your opportunity cost is lower shopping at W-mart because you are saving time. In my opinion, opportunity cost means "time is money."
What is the Opportunity cost of a particular good?
The opportunity cost of a certain good is the cost of the next best good that you are forgoing. It is NOT a sum of all the other possibilities. It is just the cost of the next best alternative. For example: The opportunity cost of going to college is the money that you could have earned in a job. Say you spend $80,000 to go to college for four years, but if you had gotten a job right out of high school, you could have made $15,000 a year. The opportunity cost of attending college is the $60,000 you would have earned if you had gotten the job right out of high school.
