What is opportunity cost explain with the help of an example class 11?
Asked by: Samantha Okuneva | Last update: August 25, 2022Score: 4.2/5 (1 votes)
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 with 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 explain briefly?
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 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 - 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 explain with help of numerical example?
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 an example of opportunity cost in business?
Opportunity cost examples
A business owner wants to add a new product to the lineup. It requires an upfront investment of $1,000 to build and market. The opportunity cost is the potential value of that money being spent elsewhere or saved for the future.
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 Mcq?
The opportunity cost of a given action is equal to the value foregone of all feasible alternative actions.
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).
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.
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 one example of an opportunity cost of free higher education?
Under free higher education, students do bear some risk. If they choose to forego two or four years of being in the workforce, they have to bear the opportunity cost of missing out on this income. They also have to pay for living expenses and books.
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 the definition of opportunity cost quizlet?
opportunity cost. the most desirable alternative given up as the result of a decision. thinking at the margin. the process of deciding whether to do or use one additional unit of some resource.
What is the opportunity cost of an investment quizlet?
The opportunity cost of capital is the best available expected return offered in the market on an investment of comparable risk and term to the cash flow being discounted.
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.
Which of the following is an opportunity cost?
The correct answer is the Value of the next best alternative that is given up. It is defined as the cost of the next best alternative foregone. It represents the sacrifices that people must make due to the scarcity of resources.
What is the opportunity cost of a good?
Opportunity costs are expressed in terms of how much of another good, service, or activity must be given up in order to pursue or produce another activity or good.
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.
What is cost concept with example?
Explanation. Under the cost concept of accounting, an asset should be recorded at the cost at which it was purchased, regardless of its market value. For example, if a building is purchased for $500,000, it will continue to appear in the books at that figure, irrespective of its market value.
What are types of cost Class 11?
- Accounting costs and Economic costs.
- Outlay costs and Opportunity costs.
- Direct/Traceable costs and Indirect/Untraceable costs.
- Incremental costs and Sunk costs.
- Private costs and Social costs.
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.