Opportunity costs
represent the potential benefits an individual, investor, or business misses out on when choosing one alternative over another
. … Understanding the potential missed opportunities foregone by choosing one investment over another allows for better decision-making.
What is the definition of opportunity cost give 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 the correct definition of an opportunity cost Brainly?
opportunity cost:
the loss of other alternatives when one alternative is chosen
.
What is the best description of opportunity cost?
Exchanging valuable goods for valuable services. The term OPPORTUNITY COST is best described as
something that
.
A person gives up when a choice is made
.
Which is the most correct answer that defines opportunity cost?
Which is the most correct answer that defines Opportunity Cost?
The cost of already using an asset or a person already employed who was put on a new project
.
What is the best definition of opportunity cost apex?
opportunity cost.
The benefits of the best alternative option that are given up by a particular decision
.
How does opportunity cost impact decision making?
In business, opportunity costs play a
major role
in decision-making. If you decide to purchase a new piece of equipment, your opportunity cost is the money spent elsewhere. Companies must take both explicit and implicit costs into account when making rational business decisions.
What is opportunity cost easy definition?
What Is Opportunity Cost? Opportunity costs
represent the potential benefits an individual, investor, or business misses out on when choosing one alternative over another
. … Understanding the potential missed opportunities foregone by choosing one investment over another allows for better decision-making.
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
.
What is an example of opportunity cost in your life?
A player attends baseball training to be a better player instead of taking a vacation
. The opportunity cost was the vacation. Jill decides to take the bus to work instead of driving. It takes her 60 minutes to get there on the bus and driving would have been 40, so her opportunity cost is 20 minutes.
What is the importance of opportunity cost?
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.
Which scenario is the best example of 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 the opportunity cost of a particular product?
Opportunity cost is
the profit lost when one alternative is selected over another
. The concept is useful simply as a reminder to examine all reasonable alternatives before making a decision. For example, you have $1,000,000 and choose to invest it in a product line that will generate a return of 5%.
Is opportunity cost included in cash flow?
While not specifically included in the definition of a relevant cash flow (as noted above)
opportunity costs are also relevant cash flows
.
What is a synonym for opportunity cost?
opportunity costnoun. Synonyms:
economic cost
.
opportunity cost
noun. The cost of an opportunity forgone (and the loss of the benefits that could be received from that opportunity); the most valuable forgone alternative.
What is the difference between an economic cost and an opportunity cost?
Economic costs include
accounting
costs, but they also include opportunity costs. Opportunity costs are the benefits you could have received if you had chosen one course of action, but that you didn't because you went with another option.
