What Represents The Value Of The Second Best Alternative That A Person Gives Up When Making A Choice? The value of the second-best alternative that a person gives up when making a choice represents the opportunity cost. The answer to your question is C. I hope that this is the answer that you were looking
Are Public Goods Free Goods? Public goods are commodities or services that benefit all members of society, and which are often provided for free through public taxation. Public goods are the opposite of private goods Do private goods have opportunity costs? Also, private goods have an opportunity cost, if we use resources to produce a
Why Does Marginal Opportunity Cost Rise? Marginal opportunity cost tends to rise, because’ as resources are continuously shifted from Opportunity-1 to Opportunity-2, their existing specialized use is disturbed. Why does the opportunity cost increase? The law of increasing opportunity cost states that when a company continues raising production its opportunity cost increases. Specifically, if it
What Is True When The Production Possibilities Frontier Is Linear? If opportunity costs are constant, a straight-line (linear) PPF is produced. This case reflects a situation where resources are not specialised and can be substituted for each other with no added cost. Which of the following is true of the production possibilities curve? Which of
Which Points On The PPF Are Productively Efficient? Productive efficiency means that, given the available inputs and technology, it’s impossible to produce more of one good without decreasing the quantity of another good that’s produced. All choices along the PPF in Figure 1, such as points A, B, C, D, and F, display productive efficiency.
How Is Cost Benefit Analysis Calculated? The BCR is calculated by dividing the proposed total cash benefit of a project by the proposed total cash cost of the project. What is the formula for cost-benefit analysis? The formula for benefit-cost ratio is: Benefit-Cost Ratio = ∑ Present Value of Future Benefits / ∑ Present Value
Is Rent An Opportunity Cost? Explicit costs are opportunity costs when producers make direct payments for expenses such as salaries and wages of employees, rent and utility expenses, and material costs. For example, a company has a $10,000 rent expense. The opportunity cost of $10,000 could have been spent on other aspects of business operations.
How Does The Production Possibilities Curve Illustrate Increasing Opportunity Costs? How does a production possibilities curve illustrate opportunity cost? It shows how much were giving up for the other item. For example to produce 8 million tons of watermelons we have to give up making 1 million pairs of shoes, because resources are limited. How
How Does Opportunity Cost Relate To The Problem Of Scarcity? This concept of scarcity leads to the idea of opportunity cost. The opportunity cost of an action is what you must give up when you make that choice. … Opportunity cost is a direct implication of scarcity. People have to choose between different alternatives when
How Does The PPC Show Scarcity? Key model. The Production Possibilities Curve (PPC) is a model that captures scarcity and the opportunity costs of choices when faced with the possibility of producing two goods or services. Points on the interior of the PPC are inefficient, points on the PPC are efficient, and points beyond the