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In real life, the opportunity cost is a difficult concept to pin down. So that third rabbit, my opportunity cost is 60 berries. Dictionary ! The opportunity cost is time spent studying and that money to spend on something else. Since there are literally thousands of investment choices you can make, there will always be something that you could have invested in that would have provided a higher return than the investment you picked. I'm getting really good at catching rabbits, so clearly, you see here, that for each incremental rabbit I get, my opportunity cost is decreasing, all the way to that fifth rabbit, maybe my opportunity cost is 20 berries. Ratio of opportunity cost is a second formula that calculates opportunity cost but uses proportions to demonstrate the value of each choice. What must be given up to acquire it C. Cost to produce it D. What you pay 2. Decisions typically involve constraints such as time, resources, rules, social norms and physical realities. (c) equal to the value of all the alternatives given up to get it. A. The time it takes to do something B. Their social opportunity cost may be close to zero. Explicit costs are expenses that can easily be accounted for. For example, if a person has $10,000 to invest and must choose between Stock A and Stock B, the opportunity cost is the difference in their returns. What is the opportunity cost. The word “opportunity” in “opportunity cost” is actually redundant. The opportunity cost approach is the one typically used in the valuation of voluntary labour time. (e) none of the above. 3. People respond to incentives. 1. Opportunity cost is the value of something when a certain course of action is chosen. An opportunity cost is the value of the best alternative to a decision. 40) The opportunity cost of something is the nominal price paid for the product. 39) The opportunity cost of something is the gain you receive as a result of your sacrifice. (b) equal to the money cost. Firms take decision about what economic activity they want to be involved in. 3. The opportunity cost represents the next best alternative you sacrifice when choosing something. The opportunity cost of something is(a) greater during periods of rising prices. Sacrifice arises because our resources are limited to meet all our unlimited needs and desires.. Opportunity Cost is when in making a decision the value of the best alternative is lost. The cost of something is what you give up to get it. And yet, for some reason, many fail to consider it altogether. 4. Your opportunity cost is what you could have done with that $30 had you not decided to add the new item to the menu. Using the opportunity cost concept, we consider the alternative. We are here to teach you how to calculate opportunity cost … Opportunity cost is defined as the value of something that is lost because you choose an alternative course of action. D. there is no opportunity cost of going to the baseball game. EconLog, March 7, 2003. “Jane Galt” describes an article by Jamie Galbraith that, among other things, adds together the Budget cost of the war and the “opportunity cost” of doing something else, such as expanding health care spending. A commuter takes the train to work instead of driving. the cost of the costume B. the fact that she can't dress up like Dora the Explorer, her second choice C. zero, because seven-year-olds don't have opportunity costs D. the cost of the Lady Gaga costume which she did not want Question 16 of 20 5.0/ 5.0 Points Which of the following is a question answered with positive economic analysis? Since people must choose, they inevitably face trade-offs in which they have to give up things they desire to get other things they desire more. Like you are really going to the baseball the opportunity cost of something is: best Answer 100 % ( 2 ratings ) Previous next... May occur in securities trading or in other decisions % ( 2 ratings ) Previous question next get! 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