What is opportunity cost explain with example class 11?
Asked by: Ms. Magdalen Emmerich Sr. | Last update: February 2, 2023Score: 4.7/5 (36 votes)
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 example?
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 formula example?
Opportunity Cost = Return on Most Profitable Investment Choice - Return on Investment Chosen to Pursue. Opportunity Cost = $80,000 (selling ten cars worth $8,000 each) - $60,000 (selling 5 trucks worth $12,000 each) Opportunity Cost = $20,000.
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 very short answer?
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.
Opportunity Cost - Detailed Description (Economics Class-XI)
What is opportunity cost for class 11?
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 definition?
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.
What is opportunity cost explain graphically?
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).
What is opportunity cost Mcq?
The opportunity cost of a given action is equal to the value foregone of all feasible alternative actions.
Which of these are examples of opportunity cost quizlet?
The cost of making a choice is that the next best alternative is forgone. This is know as opportunity cost. For example if a Government decides to make the choice of devoting more resources to the NHS then the opportunity cost is devoting those resources into the education system.
How do you find opportunity cost?
What you sacrifice / What you gain = opportunity costs.
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 are the types of opportunity cost?
The two types of opportunity costs are explicit opportunity cost and implicit opportunity cost. Explicit opportunity cost has a direct monetary value.
Which scenario is the best example of an opportunity cost?
The correct answer is a. A computer company produces fewer laptops to meet tablet demand.
What is opportunity cost Quizizz?
The opportunity cost of a good is. its price in dollars and cents. the alternative goods forgone. the price of alternative goods foregone.
Who is the father of economics?
The field began with the observations of the earliest economists, such as Adam Smith, the Scottish philosopher popularly credited with being the father of economics—although scholars were making economic observations long before Smith authored The Wealth of Nations in 1776.
Is money an opportunity cost?
Opportunity cost does not necessarily involve money. It can also refer to alternative uses of time.
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 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 are some examples of opportunities?
- Get help on projects.
- Propose working groups.
- Get testers for new ideas or products.
- Create a team to work on an idea you have.
- Share your expertise or best practices in a particular field.
What is opportunity cost Wikipedia?
When choosing an option among multiple alternatives, the opportunity cost is the gain from the alternative we forgo when making a decision. In simple terms, opportunity cost is our perceived benefit of not choosing the next best option when resources are limited.
Which of the following is an example of an opportunity cost group of answer choices?
The correct answer is Option b. It is an example of opportunity cost where money is saved instead of spending it on leisure activities such as a vacation. Opportunity cost represents a foregone or given up on making a choice.
Which is an example of an opportunity cost related to earning potential?
Example of an opportunity cost related to earning potential? a valuable employee benefit. An employer-sponsored retirement savings plan. Pay is based on a percentage of the cost of items or services sold.
What are examples of opportunities and threats?
Opportunities and threats are external—things that are going on outside your company, in the larger market. You can take advantage of opportunities and protect against threats, but you can't change them. Examples include competitors, prices of raw materials, and customer shopping trends.
What are the example of opportunities in SWOT?
Examples of opportunities for a SWOT analysis might include training, internships, or career moves. Opportunity examples for businesses include market growth, new technologies, or new investments.