Which of the following has the largest impact on opportunity cost ??
The correct option is c) limited resources Because in case of limited resources, the corporation needs to look after other opportunity costs.
What is opportunity cost affected by?
Three Key Factors of Opportunity Cost Ultimately, any worthwhile formula for measuring opportunity costs weighs on three key factors: money, time and effort, otherwise known as "sweat equity."
What is the main effect of increasing opportunity costs?
The law of increasing opportunity costs states that as you increase production of one good, the opportunity cost to produce an additional good will increase.
What are the factors that cause increasing opportunity cost?
The law of increasing opportunity cost states that each time the same decision is made in resource allocation, the opportunity cost will increase.
What are opportunity costs examples?
A student spends three hours and $20 at the movies the night before an exam. 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).
What is the 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. cost/benefit analysis.
What are the three examples of opportunity cost?
Top 7 Examples of Opportunity Cost
- Graduation Versus Salary.
- Stocks Versus Cash.
- Vacation Versus training.
- Paying off debt Versus Spending on Welfare by the government.
- Entrepreneurship versus steady job.
- Selling Stocks now and 2 months later.
- Investing in stocks or higher degree.
Which of the following is an example of opportunity costs?
A student spends three hours and $20 at the movies the night before an exam. 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).
What is high opportunity cost?
Assuming your other options were less expensive, the value of what it would have cost to rent elsewhere is your opportunity cost. Sometimes the opportunity cost is high, such as if you gave up the chance to locate in a terrific corner store that was renting for just $2,000/month.
What causes decreasing opportunity cost?
When the PPC is a straight line, opportunity costs are the same no matter how far you move along the curve. When the PPC is concave (bowed out), opportunity costs increase as you move along the curve. When the PPC is convex (bowed in), opportunity costs are decreasing.
Which of the following best describes an opportunity cost?
Which statement best describes opportunity cost? Opportunity cost is the value in dollars of a trade-off.
What are opportunity costs 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.
What means opportunity cost?
Opportunity costs represent the potential benefits that an individual, investor, or business misses out on when choosing one alternative over another. Because opportunity costs are unseen by definition, they can be easily overlooked.
Which of the following is an opportunity cost?
The correct answer is the Value of the next best alternative that is given up. It is defined as the cost of the next best alternative foregone. It represents the sacrifices that people must make due to the scarcity of resources.
Which is the best example of an opportunity cost?
A student spends three hours and $20 at the movies the night before an exam. 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).
What is a decrease in opportunity cost?
Decreasing opportunity cost states that in producing more units of one commodity, one has to forego lesser and a lesser amounts of another commodity…. See full answer below.
Which of the following best describes opportunity cost quizlet?
Which statement best describes opportunity cost? Opportunity cost is the value in dollars of a trade-off.
Which of the following is an example of opportunity cost quizlet?
The cost of making a choice is that the next best alternative is forgone. This is know as opportunity cost. For example if a Government decides to make the choice of devoting more resources to the NHS then the opportunity cost is devoting those resources into the education system.
Which is the best example of opportunity cost quizlet?
Which situation is the best example of opportunity cost? A country chooses to produce bananas instead of wheat. How does specialization enable countries to trade with one another? A country can make and sell goods affordably and buy goods that it is inefficient at making.
What causes a decrease in opportunity cost?
When the PPC is a straight line, opportunity costs are the same no matter how far you move along the curve. When the PPC is concave (bowed out), opportunity costs increase as you move along the curve. When the PPC is convex (bowed in), opportunity costs are decreasing.
Which of the following best describes the opportunity cost?
The correct answer is b. Benefits foregone by not choosing an alternative course of action.
Which of the following best defines opportunity costs?
Key Takeaways
- Opportunity cost is the forgone benefit that would have been derived from an option not chosen.
- To properly evaluate opportunity costs, the costs and benefits of every option available must be considered and weighed against the others.
What is the best example of an opportunity cost?
A student spends three hours and $20 at the movies the night before an exam. 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).
Which situation is the best of opportunity cost?
For example, choosing public transportation to travel to a particular destination by foregoing the option of traveling in one's own car is a good example of opportunity cost, because you end up saving money which needs to be spent on fuel.
Which of the following is an example of opportunity cost?
Examples of Opportunity Cost. Someone gives up going to see a movie to study for a test in order to get a good grade. The opportunity cost is the cost of the movie and the enjoyment of seeing it. At the ice cream parlor, you have to choose between rocky road and strawberry.
Which of the following best describes an opportunity cost quizlet?
Which statement best describes opportunity cost? Opportunity cost is the value in dollars of a trade-off.
Which of the following best defines an opportunity cost quizlet?
Opportunity cost is defined as the value of the next best alternative. In this case your next best alternative is to get a five-dollar dinner at Burger Joint.
Which of the following best describes the opportunity cost of an action?
Which of the following best describes the opportunity cost of an action? It is a subjective valuation that can be determined only by the individual who chooses the action.
Which one of the following best describes opportunity cost?
The correct answer is b. Benefits foregone by not choosing an alternative course of action.