Opportunity cost

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Opportunity Cost

Transcript of Opportunity cost

Page 1: Opportunity cost

Opportunity Cost

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Understanding Opportunity Cost

We make choices every day because we have limited resources, but so many wants. We therefore have to decide which wants we will satisfy, and those we will not.

Every choice involves a trade-off, you must give up something if you want to get something. Whatever you give up is called an opportunity cost.

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What is Opportunity Cost?

Opportunity cost is the cost of a decision in terms of the best alternative given up in order to achieve it.

It is the best alternative forgone.

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Examples:

1)The opportunity cost of going to college is the money you would have earned if you worked instead.

2)The opportunity cost of a gardener growing carrots would be what he would have grown instead (tomatoes, potatoes, celery, etc.)

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If I offer to give you something for nothing, is there a cost?

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Why did you chose your 1st choice?

What the the opportunity cost of your decision?

Why was that your opportunity cost?


Opportunity Cost

Opportunity Cost

Opportunity Cost. Every decision has an opportunity cost Every decision has an opportunity cost Choosing is refusing.

Opportunity Cost. Every decision has an opportunity cost Every decision has an opportunity cost Choosing is refusing.

Opportunity cost, standard cost, current purchase cost, and power and economic cost method

Opportunity cost, standard cost, current purchase cost, and power and economic cost method

Disciplinary Vocabulary: Opportunity Cost: JMoody

Disciplinary Vocabulary: Opportunity Cost: JMoody

Choice, opportunity Cost, and Incentives

Choice, opportunity Cost, and Incentives

Macro Econ - Opportunity Cost

Macro Econ - Opportunity Cost

Opportunity Cost Calculator - Monitoring Analytics · 2010-02-18 · Opportunity Cost Definition • Opportunity costs may be added to a cost-based offer for units with a documented

Opportunity Cost Calculator - Monitoring Analytics · 2010-02-18 · Opportunity Cost Definition • Opportunity costs may be added to a cost-based offer for units with a documented

Immediacy Cost-Opportunity Cost

Immediacy Cost-Opportunity Cost

MARGINAL OPPORTUNITY COST VS. AVERAGE COST PRICING OFWATERSERVICE

MARGINAL OPPORTUNITY COST VS. AVERAGE COST PRICING OFWATERSERVICE

Chapter # 4 The Opportunity Cost Theory The Opportunity Cost Theory.

Chapter # 4 The Opportunity Cost Theory The Opportunity Cost Theory.

Opportunity cost analysis

Opportunity cost analysis

Constructing an opportunity cost curve

Constructing an opportunity cost curve

Opportunity Cost & Incentives

Opportunity Cost & Incentives

MARGINAL OPPORTUNITY COST VS. AVERAGE COST …warrington.ufl.edu/centers/purc/purcdocs/papers/9919... ·  · 2008-05-22MARGINAL OPPORTUNITY COST VS. AVERAGE COST PRICING OFWATERSERVICE:

MARGINAL OPPORTUNITY COST VS. AVERAGE COST …warrington.ufl.edu/centers/purc/purcdocs/papers/9919... ·  · 2008-05-22MARGINAL OPPORTUNITY COST VS. AVERAGE COST PRICING OFWATERSERVICE:

Cost Benefit and Opportunity Cost Analysis Guidelines

Cost Benefit and Opportunity Cost Analysis Guidelines

Key Economic Concepts. 1. Opportunity Cost Economic cost of a decision or action = direct cost + opportunity cost Opportunity cost = what else would you.

Key Economic Concepts. 1. Opportunity Cost Economic cost of a decision or action = direct cost + opportunity cost Opportunity cost = what else would you.

Cost HSPM J712. Cost concepts Opportunity cost Total cost Fixed cost Variable cost Average cost Marginal cost.

Cost HSPM J712. Cost concepts Opportunity cost Total cost Fixed cost Variable cost Average cost Marginal cost.

Quantifying Opportunity Cost - CADTH.ca · opportunity cost as part of its decision making • There needs to be a better empirical understanding of what this opportunity cost is

Quantifying Opportunity Cost - CADTH.ca · opportunity cost as part of its decision making • There needs to be a better empirical understanding of what this opportunity cost is

Opportunity Cost of REDD+

Opportunity Cost of REDD+

Opportunity Cost. The principle of opportunity cost ebIsinCaGñkdaMRsUvsalIenAelIépÞdI 40 acre enaHGñkminGacdaMeBatenAelIépÞdIT aMgenaHeT. ebIsinCaGñkeFVIkarenAksidæan.

Opportunity Cost. The principle of opportunity cost ebIsinCaGñkdaMRsUvsalIenAelIépÞdI 40 acre enaHGñkminGacdaMeBatenAelIépÞdIT aMgenaHeT. ebIsinCaGñkeFVIkarenAksidæan.