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How are the concepts of scarcity choice and opportunity cost related?
Wiki User
∙ 9y ago
No, scarcity, choice and opportunity are not related to cost. All of these aspects of business are related to availability. Sometimes, costs plays a role though.
Wiki User
∙ 9y ago
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How does scarcity related to choice and opportunity cost?
Pretty straight forward - all entities (whether businesses or individuals) have a limited amount (scarcity) of both time and money. This requires each entity to decide (choose) how time and money will be spent, thus resulting in an opportunity cost for things not done or purchased. For instance, if a company has $1 million in cash, the company must decide whether to hold the funds to help increase their liquidity, pay the funds to shareholders, or invest it in new business opportunities. Once a dollar is dedicated to one of these options, that same dollar can not be allocated elsewhere.
How is an implicit finance charge calculated?
Implicit costs are opportunity costs which occurs due to a selection of choice. Suppose you want to deal with Client A instead of Client B. The implicit charge would be the amount you would have earned, had you worked with Client B.
What are the choice of the particular business?
the choice of particular business
What is meant by choice based credit system?
choice crditi system is---------------- for girl
What are the benefits of using the Choice Privileges reward scheme?
The benefits of using the choice privileges reward scheme with Choice Hotels is that you can earn points by staying at a number of places around the world - and these points can be put towards another purchase at the Choice Hotels website.
What are the basic economic concepts illustrated by a PPC?
scarcity,choice and opportunity cost
Fundamental concepts underlying the discipline of economics?
Scarcity and Choice
What are the 3 main elements of economic problem?
Scarcity, choice, opportunity cost
What are the basic concepts of economics?
Economics involves the interactions in society involving finances. Namely, economists study how the monetary value of items changes over time based on outer effects like the supply of resources and the demand of consumers.
How scarcity and choice related?
Due to scarcity, choices have to be made. Choices will be made after the opportunity cost of a decision is weighed up.Example: you need a drink. you have just enough for one can of drink. the choice is coca cola or pepsi. You want both - because you are human - but you have scarce resources - money. You have to make a choice. You choose coke - so therefore the can of pepsi becomes your opportunity cost - its what you could have had, but because of your decision, you missed out on it.
Why does choice arise in economics. Use an example to discuss the concepts of choice and opportunity cost?
why don't you get on with the coursework question.
Basic concepts of economics?
Basic concepts of economics:ScarcityChoiceOpportunity costAlternate Answer:There are two definitions of Money:A Receipt for Deposited Goods and Services.An Idea backed by Confidence.With this second definition, the owners of banks and governments can transfer the wealth of an economy to themselves.
Can opportunity cost be zero?
Opportunity cost can be zero if there are no scarcity in goods and services and resources used to produce such commodities that can lead consumers to make a choice to fulfill their wants
How scarcity force society to incur opportunity cost?
This is the basic economic problem: Infinite Wants--> Finite Resources--> Scarcity-->Choice--> Opportunity costs So the problem is: How can we allocate resources efficiently, knowing that they are an infinite number of wants (but fewer needs) and there are only a limited amount of resources, which are scarce. Because there is scarcity (deficit/lack of supply of resources), people are left with a choice: That choice is an opportunity cost. Opportunity costs is the cost/disadvantage that occurs from choosing the next-best-alternative because of scarcity. an example: the government wants to build a new highway, but ther land is scarce( there is not enough land), and so, the opportunity cost is to build a new public school. The opportunity cost is the efficiency and accesibilty of transportation. The next-best-alternative is usually chweaper but is in less quality/quantity than the initial good or service. So basically, because of scarcity, consuimers and producers have to make a choice: whose wants need to be satisfied? what is more important?
What is the potential costs of scarcity and choice?
Describe the potential costs of both scarcity and choice.
Draw a production possibility curve and use it to explain scarcity choice and opportunity cost?
Production Possibility Curve this is an image of a ppf/ ppc
What is Scarcity and Choice?
scarcity is a situation when demand for a good exceeds its supply even at a zero price and choice is a consequence of scarcity. choice emerges when limited resources are to be used for satisfaction of unlimited wants.
