WebJul 16, 2024 · The concepts of scarcity, choice, and opportunity cost are at the heart of economics. A good is scarce if the choice of one alternative requires that another be given up. The existence of alternative uses forces us to make choices. The opportunity cost of any choice is the value of the best alternative forgone in making it. Web4. Explain why the interest rate is the opportunity cost of holding currency. (4 marks) It is the sum of the real interest rate on an alternative asset plus the expected inflation rate, which is the rate at which money loses buying power. 5. Describe the process in the money market by which the interest rate reaches its equilibrium value if it ...
Opportunity Cost Definition Sunk Cost, Explicit & Implicit Cost
WebVerified questions. (a) If a firm sells Q Q tons of a product, the price P P received per ton is P=1000-\frac {1} {3} Q P = 1000− 31Q. The price it has to pay per ton is P=800+\frac {1} {5} Q P = 800+ 51Q. In addition, it has transportation costs of 100 per ton. Express the firm's profit \pi π as a function of Q Q, the number of tons sold ... WebFeb 10, 2024 · Opportunity cost is an economic concept, measuring the lost value of an investment or other opportunity you don't take. Here's how it works, with examples. Menu burger Close thin Facebook Twitter Google plus Linked in Reddit Email arrow-right-sm arrow-right Loading Home Buying Calculators How Much House Can I Afford? Mortgage … free fit program
Opportunity Cost Definition - Economics Help
WebApr 13, 2024 · review, statistics 266 views, 1 likes, 2 loves, 3 comments, 2 shares, Facebook Watch Videos from City of Erie Government: A review of Erie’s most... WebFeb 22, 2024 · Opportunity cost = FO - CO FO and CO are the expected returns of your foregone option (i.e., the one not chosen) and your chosen option, respectively. Let’s look at some examples of opportunity cost in action. Imagine you have a company faced with two mutually exclusive options: Invest excess capital in developing a new product line WebMar 16, 2024 · The opportunity cost represents the alternative given up when choosing one resource over another. These two concepts have a direct link because, for example, companies may use a lower quality but more available resource for producing goods. Choice is among the most common activities in an economy. free fitness workouts online