Which of the following are examples of opportunity costs?

Which of the following are examples of opportunity costs?

Examples of Opportunity Cost

• Someone gives up going to see a movie to study for a test in order to get a good grade.
• At the ice cream parlor, you have to choose between rocky road and strawberry.
• A player attends baseball training to be a better player instead of taking a vacation.

What is an opportunity cost How does the idea relate?

The idea behind opportunity cost is that the cost of one item is the lost opportunity to do or consume something else; in short, opportunity cost is the value of the next best alternative.

In which situations should opportunity costs be considered?

It should be considered whenever circumstances are such that scarcity necessitates the election of one option over another. Opportunity cost is usually defined in terms of money, but it may also be considered in terms of time, person-hours, mechanical output, or any other finite resource.

What factors go into the opportunity cost of a decision?

time spent due to the decision actual financial cost of the decision the sum of all benefits from all foregone alternatives benefits from the best foregone alternative the difference between the benefits of the first and second best choices Incorrect In a competitive market, all of the choices along.

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.

Which situation is best example of opportunity cost?

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). A commuter takes the train to work instead of driving.

What are the three types of opportunity cost?

Three phrases in the definition of opportunity cost warrant further discussion–alternative foregone, highest valued, and pursuit of an activity.

What is Ricardo’s opportunity cost?

What is Ricardo’s opportunity cost? Choosing the promotion over time with his friends.

What is considered a resource because it?

Land is considered a resource because it. is used to produce things.

Which cost is known as opportunity cost?

When economists refer to the “opportunity cost” of a resource, they mean the value of the next-highest-valued alternative use of that resource. If, for example, you spend time and money going to a movie, you cannot spend that time at home reading a book, and you can’t spend the money on something else.