The investor’s opportunity cost represents the cost of a forgone alternative if you choose one alternative over another, then the cost of choosing that alternative becomes your opportunity cost if you choose not to go to work today, for example, your opportunity cost becomes your lost wages. Pmp exam tips : this post talks about the concept of opportunity cost every pmp aspirant would wonder why they will need to learn about concepts and knowledge not. The opportunity cost of going to college is the wages he gave up working full time for the number of years he was in college mario has a side business in addition to his regular job if he decides to spend more time on his side business, the opportunity cost is the wages he lost from his regular job.
Opportunity cost is the cost of an economic choice in terms of what was chosen and what was not chosen, or given up check these examples of opportunity costs to understand opportunity cost examples. The opportunity cost of working for company a is the value of what we gave up to take the job we gave up the value of working for company b, so that is the opportunity cost of choosing to work. Start studying ch1 opportunity cost learn vocabulary, terms, and more with flashcards, games, and other study tools.
Opportunity cost is a key concept in economics, and has been described as expressing the basic relationship between scarcity and choice the notion of opportunity cost plays a crucial part in attempts to ensure that scarce resources are used efficiently.
An opportunity cost is the value of the best alternative to a decision decisions typically involve constraints such as time, resources, rules, social norms and physical realities decisions typically involve constraints such as time, resources, rules, social norms and physical realities.
Opportunity cost concerns the possibility that the returns of a chosen investment are lower than the returns of a forgone investment the key difference is that risk compares the actual performance of an investment against the projected performance of the same investment, while opportunity cost compares the actual performance of an investment against the actual performance of a different investment. Course hero has thousands of opportunity cost study resources to help you find opportunity cost course notes, answered questions, and opportunity cost tutors 24/7.
Economics - chapter 2 study play opportunity cost the best alternative sacrificed for a chosen alternative marginal analysis an examination of the effects of additions to or subtractions from a current situation the principle that the opportunity cost increases as production of one output expands.