0
Why are there always opportunity costs when we shift from making one to another?
Wiki User
∙ 6y ago
some resources are better suited for use in making the first product.
Alberta Schmitt
Add your answer:
Earn +20 pts
Why are there always opportunity costs when we shift from making one product to another?
some resources are better suited for use in making the first product.
Why would an accountant say a firm is making a profit and an economist say it is losing money?
Economists always include both implicit and explicit costs in the calculation of their profits while accountants only cater for explicit costs when calculating profits.So due to the inclusion of opportunity costs, which can be termed implicit costs, economists' profits will always be lower than accountants' profits.Hence an accountant may say they are making profits while it is different from an economist's view.
An opportunity cost is defined as?
The cost of passing up the next best choice when making a decision. For example, if an asset such as capital is used for one purpose, the opportunity cost is the value of the next best purpose the asset could have been used for. Opportunity cost analysis is an important part of a company's decision-making processes, but is not treated as an actual cost in any financial statement.
How opportunity cost is measured?
how is opportunity cost measured {Finding the value of the best options that is not chosen.}
What generates the law of increasing opportunity costs?
The law of increasing opportunity costs states that the more of a product that is produced the greater is its opportunity cost.
Why are there always opportunity costs when we shift from making one product to another?
some resources are better suited for use in making the first product.
Why are there always opportunity costs when shift from making one product to another?
some resources are better suited for use in making the first product.
the potential economic benefits that are lost by making one choice instead of another are called what?
Opportunity costs
Which costs is often important in decision making but is omitted from conventional accounting records?
opportunity cost
Why would an accountant say a firm is making a profit and an economist say it is losing money?
Economists always include both implicit and explicit costs in the calculation of their profits while accountants only cater for explicit costs when calculating profits.So due to the inclusion of opportunity costs, which can be termed implicit costs, economists' profits will always be lower than accountants' profits.Hence an accountant may say they are making profits while it is different from an economist's view.
An opportunity cost is defined as?
The cost of passing up the next best choice when making a decision. For example, if an asset such as capital is used for one purpose, the opportunity cost is the value of the next best purpose the asset could have been used for. Opportunity cost analysis is an important part of a company's decision-making processes, but is not treated as an actual cost in any financial statement.
How are trade off''s and opportunity costs different?
The trade-offs and opportunity costs are different from an economic standpoint in the sense that trade-offs are situations where you give up one thing in favor of another.
When are opportunity costs present?
Every time a choice is made, opportunity costs are assumed.
How opportunity cost is measured?
how is opportunity cost measured {Finding the value of the best options that is not chosen.}
What can a decision- making grid do?
help you determine the oppotunit cost of your decision.
What is the phrase definition for decision making grid?
A decision-making grid is a visual tool that helps individuals or teams evaluate and prioritize options based on specific criteria. It typically involves listing alternatives, criteria for evaluation, and assigning weights to each criterion to aid in making informed decisions. The grid helps organize complex information and systematically compare choices to arrive at the best possible solution.
What generates the law of increasing opportunity costs?
The law of increasing opportunity costs states that the more of a product that is produced the greater is its opportunity cost.
