What is an opportunity cost explain with the help of an example?

Asked by: Sebastian Rice  |  Last update: July 25, 2023
Score: 4.1/5 (27 votes)

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 is opportunity cost explain with the help of an example class 11?

Opportunity costs can be viewed as a trade off. Trade offs happen in decision making when one option is chosen over another option. Opportunity costs sums up the total cost for that trade off. For example, a certain kind of bamboo can be used to produce both paper and furniture.

What is opportunity cost explain with the help of an example Brainly?

The loss of other alternatives when one alternative is chosen is called opportunity cost. Example: 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.

What is opportunity cost example in business?

They decide to buy themselves a new pair of shoes with the money. The opportunity cost in this situation is the ability to buy something else with the $50—they chose to buy shoes, and they are now missing out on the ability to buy something else. 3. A manufacturer gets two orders and can only fulfill one.

What is opportunity cost explain with the help of diagram?

The following diagram explains this: Opportunity Cost Graph – Let's assume that the farmer can produce either 50 quintals of rice (ON) or 40 quintals of wheat (OM) using this land. Now, if he produces rice, then he cannot produce wheat. Therefore, the OC of 50 quintals of rice (ON) is 40 quintals of wheat (OM).

Opportunity Cost Definition and Real World Examples

29 related questions found

What is opportunity cost explain with example class 12?

In other words, the cost of enjoying more of one good in terms of sacrificing the benefit of another good is termed as opportunity cost of the additional unit of the good. Example: We have Rs 15,000 with two choices a) to invest in the shares of a company XYZ or b) to make a fixed deposit which gives interest 9%.

What is opportunity cost Class 9?

Opportunity cost is a concept in Economics that is defined as those values or benefits that are lost by a business, business owners or organisations when they choose one option or an alternative option over another option, in the course of making business decisions.

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.

What is opportunity cost simple definition?

Opportunity cost is an economics term that refers to the value of what you have to give up in order to choose something else. In a nutshell, it's a value of the road not taken.

What is opportunity cost simple words?

Opportunity cost is the value of something when a particular course of action is chosen. Simply put, the opportunity cost is what you must forgo in order to get something.

What is the opportunity cost 11th class?

Class 11: The Concept Of Opportunity Cost Notes - Class 11

Opportunity cost is the value of something when a particular course of action is chosen. Simply put, the opportunity cost is what you must forgo in order to get something.

What is opportunity cost in economics class 11 ISC?

Opportunity Costs in economics are the benefits that an individual, investor or business forego (miss out) , when they choose one alternative over another. Opportunity Cost is the next best alternative, which is foregone, when a particular alternative is chosen.

What is opportunity cost Vedantu?

Opportunity cost is commonly defined as the next best alternative. Also, known as the alternative cost, it is the loss of gain which could have been gained if another alternative was chosen. It can also be explained as the loss of benefit due to a change in choice.

What is opportunity cost Mcq?

The opportunity cost of a given action is equal to the value foregone of all feasible alternative actions.

What is opportunity cost formula?

Opportunity cost is the benefit you forego in choosing one course of action over another. You can determine the opportunity cost of choosing one investment option over another by using the following formula: Opportunity Cost = Return on Most Profitable Investment Choice - Return on Investment Chosen to Pursue.

What is opportunity cost 2nd PUC?

It is an additional cost incurred to produce an additional output. In other words it is the net additions to the total cost when one more unit of output is produced.

What is cost in economics class 11?

Cost is the total expenditure incurred in producing a commodity. In economics, it is sum of total of actual expenditure incurred on inputs (i. e. explicit cost) and the imputed valued of inputs supplied by the owners (i. e. implicit cost).

What is opportunity cost in Wikipedia?

In simple terms, opportunity cost is our perceived benefit of not choosing the next best option when resources are limited. Opportunity costs are not limited to monetary or financial costs. The actual cost of lost time, lost production, or any other for-profit benefit shall also be considered an opportunity cost.

How do you explain opportunity cost to a child?

Before or after your child makes their choice – remind them they can only have one — have them name their 2nd favorite choice as well. This 2nd choice is the opportunity cost. In other words, the cost of missing out on the next best alternative.

Which situation 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 is opportunity cost 3rd grade?

Opportunity cost is the process of choosing one good or service over another. The item that you don't pick is the opportunity cost. Even though you might not realize it, you use opportunity cost every single day.

What is the opportunity cost in Cambridge?

Meaning of opportunity cost in English. the value of the action that you do not choose, when choosing between two possible options: If we do take on the project, we need to think about the opportunity costs involved.

Why is opportunity cost important?

The concept of Opportunity Cost helps us to choose the best possible option among all the available options. It helps us use every possible resource tactfully and efficiently and hence, maximize economic profits.

What is cost in economics with example?

cost, in common usage, the monetary value of goods and services that producers and consumers purchase. In a basic economic sense, cost is the measure of the alternative opportunities foregone in the choice of one good or activity over others. This fundamental cost is usually referred to as opportunity cost.

What is an example of a cost?

The definition of cost is the amount paid for something or the expense of doing something. An example of a cost is $3 for a half gallon of milk.