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The opportunity cost of spending ten dollars per week on the lottery is the value of what you could have purchased or invested that money in instead. This could include saving for a future goal, buying essential items, or investing in a more reliable form of entertainment or a financial asset. Essentially, it's the lost potential benefits from alternative uses of that money. Over time, this cost can accumulate significantly, as those funds could have compounded or contributed to more meaningful expenditures.
What else can I help you with?
What is the opportunity cost of spending an evening revising for an economics exam?
Not visiting my girl friend and leisure
Relevance of opportunity cost?
Opportunity cost is the economic, or real cost, of taking any action (as opposed to its accounting, or fiscal, cost). This cost is relevant as part of profit-optimising functions that determine allocations of spending and goods for economic agents.
How do you analyze a project as oppourtunity cost?
Opportunity cost - This refers to selecting a project over another due to the scarcity of resources. In other words, by spending this rupee on this project, you are passing on the opportunity to spend this rupee on another project. How big an opportunity are you missing? The smaller the opportunity cost, the better it is.Opportunity Cost is a technique that is used in project selection
Can you explain the concept of opportunity cost using a money analogy?
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.
Why an increase in spending on police and armed forces may result in an opportunity cost?
Opportunity cost is defined as what you have to give up to get something. Specifically, the opportunity cost of doing something is the value of best alternative. For example, if Bob decides to watch TV instead of studying for a big science test he has in school the next day, the opportunity cost is that study time. All decisions carry an opportunity cost even in cases such as defense or public safety spending because there is always an alternate choice. For example, a city could choose to hire 50 new police officers or, with the same money, they could choose to hire 50 new teachers or build a new park or do any of a large number of things. In particular, if there is a greater need for something else, such as new teachers, then the opportunity cost of increasing police spending will be greater than any benefit from the spending. In that case, police spending would be a poor economic decision because there is another place to spend the money that will create more good for the city as a whole.
Is it possible for a person to incur an opportunity cost without spending any money?
yes, offcourse, why not, absolutely, definitely, reasonably yes
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.
What are some examples of opportunity?
If a gardener decides to grow carrots, and she could sell these for 50 dollars at the end of the season, and her next best option was to grow potatoes which sold for 60 dollars, the opportunity cost would be the 10 dollars she lost from not growing potatoes.
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."
How can you make a go kart without spending over a 100 dollars?
Probably impossible. The wheels and tires alone will cost that much.
When a state government chooses to build more roads the required resources are no longer available for spending on public education This dilemma illustrates the concept of?
Opportunity cost.
When a state government chooses to build more roads the required resources are no longer available for spending on public education. This dilemma illustrates the concept of what?
Opportunity cost.
