Give three examples of opportunity cost from your day-to-day life, and how you made your decision based on opportunity cost. Discuss whether or not these opportunity costs are same or different than monetary costs Opportunity cost is defined as the value of the best alternative forgone in making any choice. These decisions are made are made almost on a daily basis in our live and I make these decisions on a day to day basis in my life. I must point out that these opportunity costs are not entirely monetary
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Opportunity Cost Introduction In this paper you are going to have a list of questions referring to opportunity cost, absolute advantage, and comparative advantage. This is based on Michelle being able to grow 200 pounds of potatoes or raise 50 chickens if she uses all her resources for each. James is able to grow 80 pounds of potatoes or 40 chickens if he uses all his resources for each. What is Michelle’s opportunity cost of producing potatoes? The opportunity cost of producing
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Opportunity cost is the monetary value of any activity measured in terms of the value of the next best alternative forgone (that is not preferred). In other language, it is the ritual killing of the second-best choice available to somebody, or group, which has picked among several mutually exclusive choices or capital budgeting decisions. Small Examples: In a restaurant situation, the opportunity cost of eating steak could be trying the salmon. The opportunity cost of ordering both meals could be
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Opportunity cost, from an economics perspective, is the value of the alternative that must always be sacrificed to obtain a good or service. All sane people have unlimited wants which they try to satisfy with the limited resources of the world. Limited resources lead to scarcity, which then lead people to weigh their alternatives and make choices. In the end, no matter which choice they make, it will always leave behind a cost, an opportunity cost. Basically, with the resource of time, humans engage
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Question One A. Opportunity Costs is the use of resources in one way prevents their use in other ways. By 2025 healthcare spending is projected to increase and represent 20.1% of the total economy and will force each State to make tradeoffs between providing healthcare vs essentials like education, public safety, infrastructure etc. B. Health care expenditures need to be controlled otherwise the tradeoffs will erode infrastructure, lower the standards of living and will take away from maintaining
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CONCEPTS OF MICROECONOMICS Weighing Opportunity Costs In our first week of Microeconomics we are looking closely at a specific scenario. We will use what we read and what we learned the first week, about the basics of Microeconomics. We will look closely at opportunity costs and at comparative advantages. The scenario this week is as follows. Two people, Michelle and James live alone in an isolated region. They each have the same resources available and they grow potatoes
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Unit 1 Individual Project Opportunity Cost and Trade Advantages Heather L. Sellers AIU Online, Microeconomics ECON220-1401A-04 Abstract The unit 1 individual project has requested that specific questions in relation to Comparative Advantage, Absolute Advantage, Opportunity Cost and Trade be completed. This paper will show the formulas to determine the information for who has absolute advantage, who has comparative advantage and what the opportunity cost is for each trade option. This paper
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Introduction to Microeconomics and Opportunity Cost 1. What is the difference between microeconomics and macroeconomics? The key difference between micro-economics and macro-economics is that micro-economics is concerned with the individual, group or company level; whereas macro-economics is concerned with the study of economics on a national as well as holistic scale. Therefore micro-economics specifically focusses on issues that affect individuals and associated company/enterprise 2. What
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than mandated. However, for some people, the fine – coupled with the chance of being ticketed, as speeders are not always caught – still does not outweigh the benefit they receive from traveling faster. Essentially, people are computing an opportunity cost benefit analysis of whether it is worth it to speed given the possibility of a speeding fine. For instance, speeding fines rise as the offense becomes more extreme; barely going over the limit warrants a small fine, going a lot over will get
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ANS: B PTS: 1 DIF: Difficulty: Easy NAT: BUSPROG: Analytic LOC: DISC: Scarcity, tradeoffs, and opportunity cost KEY: Bloom's: Comprehension 2. Which of the following statements is true? a. | In a world of efficiently used scarce resources, more of one good necessarily means less of some other good. | b. | The law of increasing opportunity costs assumes that all people have the same ability to produce goods. | c. | Efficiency implies that it is impossible to
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