If a good is scarce, then demand for it (and usually price) goes up. If you have the opportunity to consume the good, and decline, then you may not have an opportunity to do so in the future. You may anticipate the future availability of the good when considering the opportunity cost of declining it now.
An example: A football match between your two favourite teams and a trip to the cinema may have similar costs, but you can go to the cinema tomorrow, and your favourite teams may not play each other again for a long time.
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.
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.
Opportunity cost is like choosing between spending money on a new phone or a vacation. If you pick the phone, the cost is not just the price of the phone, but also the missed opportunity to go on vacation. So, the opportunity cost is the value of the next best alternative that you give up when making a decision.
Look up Production Possibility Frontier, it is the same thing as a Opportunity Cost Curve.
opportunity cost of x is equal to y over x. The answer then becomes the slope for the graph.
Scarcity refers to the limited availability of resources, while opportunity cost is the value of the next best alternative that is forgone when a decision is made. In essence, scarcity is about the lack of resources, while opportunity cost is about the trade-offs that come with making choices in the face of scarcity.
Scarcity is a situation where there is not enough to satisfy everyone's wants.
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.
Scarcity, choice, opportunity cost
scarcity,choice and opportunity cost
Actual cost (real cost): Are those which are actually incurred by the firm in payment for labor, material, plant, building, machinery, equipment ,etc. Opportunity cost: The opportunity cost is the opportunity lost. An opportunity to make income is lost because of scarcity of resources like land, labor, capital etc., or the making of one decision over another decision.
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
Opportunity cost refers to the economic benefit forgone by using a resource for one purpose rather than another.
Opportunity cost is influenced by the value of the next best alternative that is forgone when a decision is made. Factors that contribute to opportunity cost include the scarcity of resources, the benefits and drawbacks of each option, and individual preferences and priorities.
Scarcity: the inability of economic actors to satisfy their wants and need to make trade-offs to achieve their optimal outcome. Opportunity cost: the highest-valued alternative action forgone as the result of taking an action. Link: scarcity implies all wants cannot be met. To meet our wants, we make trade-offs. Trade-offs involve opportunity costs because we must sacrifice alternatives outcomes for the rational (optimal outcome). Therefore, opportunity costs are the price we pay to trade-off in the condition of scarcity.
If you do not have a resource, you will have to make different decisions. If you have an opportunity come up, you may have to change your plan.
The cost of an alternative that must be forgone in order to pursue a certain action. Opportunity cost is the cost of any activity measured in terms of the value of the next best alternative forgone (that is not chosen). It is the sacrifice related to the second best choice available to someone. Opportunity cost is a key concept in economics, and has been described as expressing "the basic relationship between scarcity and choice". The notion of opportunity cost plays a crucial part in ensuring that scarce resources are used efficiently.