An opportunity cost
arises when a person has more than one option to choose
. If the person chooses an alternative from the available choices, the opportunity cost is the benefit that might have been earned from the second-best alternative.
What is an opportunity cost quizlet?
opportunity cost.
the most desirable alternative given up as the result of a decision
.
thinking
at the margin. the process of deciding whether to do or use one additional unit of some resource.
Which best describes an opportunity cost economics quizlet?
What is opportunity cost? The
most desirable alternative given up as a result of a decision
. Give an example of a business trade-off. An example would be an increase use of technology or an increase use of labor.
What is your opportunity cost?
Simply put, the opportunity cost is
what you must forgo in order to get something
. The benefit or value that was given up can refer to decisions in your personal life, in a company, in the economy, in the environment, or on a governmental level.
Which scenario is the best example of an opportunity cost?
The correct answer is a.
A computer company produces fewer laptops to meet tablet demand
. Opportunity cost defines the benefit obtained by having a commodity after forgoing some other commodity. In the problem statement, the computer company incurs an opportunity cost of laptops for tablets.
What is an example of scarcity?
Scarcity exists when there is not enough resources to satisfy human wants. One of the most widely known examples of resource scarcity impacting the United States is that
of oil
. As global oil prices increase, local gas prices inevitably rise.
What is opportunity cost give example?
The opportunity cost is
time spent studying and that money to spend on something else
. A farmer chooses to plant wheat; the opportunity cost is planting a different crop, or an alternate use of the resources (land and farm equipment). A commuter takes the train to work instead of driving.
What is opportunity cost explain with an example?
When economists refer to the “opportunity cost” of a resource, they
mean the value of the next-highest-valued alternative use of that resource
. If, for example, you spend time and money going to a movie, you cannot spend that time at home reading a book, and you can't spend the money on something else.
What is opportunity cost provide an example quizlet?
Opportunity Cost is
when in making a decision the value of the best alternative is lost
. e.g. choosing electricity over gas, the opportunity cost is what you've lost from not picking gas.
What are three types of opportunity cost?
Three phrases in the definition of opportunity cost
warrant further discussion–alternative foregone, highest valued, and pursuit of an activity
.
Why is opportunity cost important?
The concept of Opportunity Cost
helps us to choose the best possible option among all the available options
. It helps us to use every possible resource tactfully, efficiently and hence, maximize economic profits.
What is opportunity cost in decision-making?
Put simply, opportunity cost is
what a business owner misses out on when selecting one option over another
. It's a way to quantify the benefits and risks of each option, leading to more profitable decision-making overall.
What is the best example of an opportunity cost Brainly?
Answer Expert Verified
A good example of opportunity cost is
you can spend money and time on other things but you can not spend time reading books or the money in doing something which can help
.
Which company has a comparative advantage in producing small tubes of toothpaste?
Which company has the comparative advantage in producing small tubes of toothpaste?
Bright White
– because it has the bigger difference than Fresh!
Which describes a way in which consumers most likely?
Which describes a way in which consumers most likely benefit from producers' absolute advantage? Consumers'
opportunity costs decrease
. … Consumers can find a given product in more places. Prices decrease as a result of increased production efficiencies.
What is scarcity in simple words?
Scarcity refers to
a basic economics problem
—the gap between limited resources and theoretically limitless wants. This situation requires people to make decisions about how to allocate resources efficiently, in order to satisfy basic needs and as many additional wants as possible.
