| Every time we have to make a choice we are faced with an opportunity cost. Using an example in your professional life identify a situation where you were presented with a choice, the opportunity cost of the choice you made and the process you used to make your choice. As part of your discussion explain whether or not responsible stewardship played a role in your choice. Remember to use the appropriate economic concepts and terminology that are applicable to your answer. In my professional life
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Opportunity Cost Paper If you could understand and apply one key concept in economics that would most affect the decisions you make in both your personal and professional life, it would be opportunity cost. That is a bold statement; therefore, you must understand why and how this statement is true. First, you must understand a definition: opportunity cost is the value of a resource in its next best use. These thirteen words are so deceptively simple that to many these words defy understanding
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Opportunity Cost Name Course Subject Among the key concepts in economics and in the whole world is that resources are finite, and they are not freely available. This is the fact that forms the entire basis for economics because if the resources were freely available and infinite then there would be no need for commerce and money. The scarcity of resource means that using a resource to make something means a person cannot use the same material to make something else at the same time
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of benefits and losses. 2 Describe the opportunity cost of the choices made by the traveler. An opportunity cost is the measure of a cost in a missed opportunity. In a variety of different dilemmas, there is generally an infinite amount of choices to be made. In the traveler’s dilemma, he or she has the opportunity of submitting a certain amount in order to maximize their gains and minimize their losses. By only speaking in terms of opportunity costs in a traveler’s dilemma, it is very difficult
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Opportunity cost refers to what you have to give up to buy what you want in terms of other goods or services. When economists use the word "cost," we usually mean opportunity cost. The word "cost" is commonly used in daily speech or in the news. For example, "cost" may refer to many possible ways of evaluating the costs of buying something or using a service. Friends or newscasters often say "It cost me $150 to buy the iPhone I wanted." Definitions and Basics Opportunity Cost
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Burton Cummings graduated with honors from the Canadian Trucking Academy, his father gave him a $350,000 tractor-trailer rig. Recently, Burton was boasting to some fellow truckers that his revenues were typically $25,000 per month, while his operating costs (fuel, maintenance, and depreciation) amounted to only $18,000 per month. Tractor-trailer rigs identical to Burton’s rig rent for $15,000 per month. If Burton was driving trucks for one of the competing trucking firms, he would earn $5,000 per month
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order to help with your answers – you are not required to present a graph): a) What it is the opportunity cost of producing an additional bowling ball measured in terms of forgone bicycles in western Leisureland? b) What is the opportunity cost of producing an additional bowling ball measured in terms of forgone bicycles in eastern Leisureland? c) Explain the difference in opportunity cost between western and eastern Leisureland. Which region has a comparative advantage in producing
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choice betweent the family care and work. He or she may give up one of them. So the opportunity cost is the cost of any activity measured in terms of the best alternative forgone. He or she has to make the rational decision(choices that involve weighing up the benefit of any activity against its opportunity cost, ) it’s depend on the marginal cost has smaller than the marginal benefits. Marginal cost is the additional cost of doing a little bit more (or 1 unit more if a unit can be measured) of an activity
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Case 1.2 Opportunity cost and productivity in agriculture Summary This case study shows how the concept of opportunity cost can be applied to calculate a measure of the value of economic activity that incorporates resource costs due to environmental damage from the activity. Suggested answers 1 What is a society’s benefit from higher productivity? Productivity equals the ratio of value of output from a production activity to the value of resources used in doing that activity. Hence
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1. What is an opportunity cost? How does the idea relate to the definition of economics? Which of the following decisions would entail the greater opportunity cost: Allocating a square block in the heart of New York City for a surface parking lot or allocating a square block at the edge of a typical suburb for such a lot? Explain. LO1 Answer: An opportunity cost is what was sacrificed to do or acquire something else. The condition of scarcity creates opportunity cost. If there was no
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