Define the term opportunity cost concept
Define the term opportunity cost concept.
Expert
Opportunity Cost: It refers to the cost of foregoing or providing up an opportunity. This is the cost of the next best option. It shows the income of benefit foregone since an exact course of action has been considered. Like Adam smith observed, when a hunter can bag a deer or a beaver within the single day, the cost of deer is a beaver and the cost of beaver is like a deer. A man that who marries a girl is foregoing the opportunity of marrying other girl. A film actress can either do modeling work or act in films. She can’t do the jobs at the same time both. Her acting within the film results in the loss of an opportunity of doing modeling work. Similarly, if an old building is proposed to be utilized for a business, where rent of the building is the opportunity cost. This cost concept was first developed through an Austrian economist, Wieser.
This cost concept plays a significant role in managerial decisions. This is useful in determination of relative prices of various goods. This is also useful in fixing the price of an output factor. Above everything, this help in the best allocation of available resources.
The knowledge gained while an Apple employee learns a specialized technique on an iPod assembly line is an illustration of: (w) comparative technological advantage. (x) specific training. (y) on-the-job leveraging. (z) general training. Q : Demands of consumers adjusting to new CD sales have fallen from 2000, although sales of DVDs have increased, suggesting such that: (w) supply of prerecorded music should have fallen. (x) law of demand does not apply to the music market. (y) demands of many consumers adjusted to new technology. (z) music i
CD sales have fallen from 2000, although sales of DVDs have increased, suggesting such that: (w) supply of prerecorded music should have fallen. (x) law of demand does not apply to the music market. (y) demands of many consumers adjusted to new technology. (z) music i
The relative price of leisure rises while there are increases within the: (w) supply of labor. (x) wage rate. (y) cost of living. (z) marginal tax rate on income. Can someone explain/help me with best solution abou
Demands for resources are derived since they: (1) depend upon producers supplies of such resources. (2) depend on consumers demands for the goods the resources produce. (3) rely on the availability of suppliers. (4) rely on the industry’s demand
Net economic investment plus depreciation equivalents: (a) the capital output ratio. (b) gross economic investment. (c) gross domestic product. (d) the capital stock. Hello guys I want your advice. Please recommend
Illustrates the term long run production function?
Define the term full cost concept.
The demand for labor would move downward like a consequence of: (w) grocery stores buying fewer automatic check-out touchpad computers, and in place of relying more heavily on cashiers to ensure friendly interactions along with customers. (x) declines
States the functions and responsibilities of managerial economist?
An individual’s labor supply curve is negatively sloped that is backward-bending into a range of wages while the: (i) demand for goods exceeds the demand for leisure. (ii) worker offers more hours of labor while the wage rate in
18,76,764
1923389 Asked
3,689
Active Tutors
1414164
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!