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Why does the opportunity cost of a good rise as society produces more of it?
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Why do opportunity cost increase as society produces more of a good?
Because when one produces one product, the opportunity cost of the other product increases. The concave represents the increasing opportunity cost with the production of a good.
What is one country of comparative advantage in the production of a certain good?
It has a lower opportunity cost for production of that good.
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
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.
Why scarcity forces individuals and society to incur opportunity costs?
Because in an economy, everything is "scarce" (there is a finite amount of that good available), individuals and society can only use these scarce resources to produce a fixed amount of good. Therefore, they have to choose how to use their resources, creating the concept of opportunity costs. Example: You have 100 pieces of wood in the planet You can either create 50 bookshelves or 30 tables. If you choose to produce bookshelves, the opportunity cost is 30 tables (since you don't have any more pieces of wood to produce the tables) and if you choose to produce the tables, the opportunity cost will be 50 bookshelves (for the same reason)
Why do opportunity cost increase as society produces more of a good?
Because when one produces one product, the opportunity cost of the other product increases. The concave represents the increasing opportunity cost with the production of a good.
Explain why a production possibilities curve is concave?
Because when one produces one product, the opportunity cost of the other product increases i.e. the concave represents the increasing opportunity cost with the production of a good.
What is one country of comparative advantage in the production of a certain good?
It has a lower opportunity cost for production of that good.
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
Law of decreasing opportunity cost?
The law of decreasing opportunity cost states that as a producer shifts resources from one good to another, the opportunity cost of producing additional units of the second good will decrease. This is because resources are not equally productive in all activities, leading to diminishing returns as more resources are allocated to a single activity.
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.
Why scarcity forces individuals and society to incur opportunity costs?
Because in an economy, everything is "scarce" (there is a finite amount of that good available), individuals and society can only use these scarce resources to produce a fixed amount of good. Therefore, they have to choose how to use their resources, creating the concept of opportunity costs. Example: You have 100 pieces of wood in the planet You can either create 50 bookshelves or 30 tables. If you choose to produce bookshelves, the opportunity cost is 30 tables (since you don't have any more pieces of wood to produce the tables) and if you choose to produce the tables, the opportunity cost will be 50 bookshelves (for the same reason)
What is the financial and opportunity costs consumers pay when looking for a good or service?
search cost
Why does scarcity forces individuals and society to incur opportunity costs?
Because in an economy, everything is "scarce" (there is a finite amount of that good available), individuals and society can only use these scarce resources to produce a fixed amount of good. Therefore, they have to choose how to use their resources, creating the concept of opportunity costs.Example:You have 100 pieces of wood in the planetYou can either create 50 bookshelves or 30 tables.If you choose to produce bookshelves, the opportunity cost is 30 tables (since you don't have any more pieces of wood to produce the tables) and if you choose to produce the tables, the opportunity cost will be 50 bookshelves (for the same reason)Read more: http://wiki.answers.com/Why_scarcity_forces_individuals_and_society_to_incur_opportunity_costs#ixzz1SVLrG1QA
What is decreasing opportunity cost?
the amount of one good that has to be sacrificed to produce one more unit of another good.
Why does opportunity cost decreases on the Indifference curve?
If our preferences convex, the indifference curve exhibits decreasing marginal rate of substitution. That is, the more you consume of good X, then you are willing to give up less of good Y. Thus, the opportunity cost of exchanging good Y decreases as we get more of good X.
A good or service that is foregone by choosing one alternative over another is called a?
opportunity cost
