What is the opportunity cost of studying?
The opportunity cost is time spent studying and that money to spend on something else. The opportunity cost is an hour spent elsewhere each day.
What is opportunity cost explain with the help of an example?
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.
Is there a formula for opportunity cost?
The formula for calculating an opportunity cost is simply the difference between the expected returns of each option.
Which example illustrates opportunity cost?
the value of the next best alternative to any decision you make; for example, if Abby can spend her time either watching videos or studying, the opportunity cost of an hour watching videos is the hour of studying she gives up to do that.
Why the opportunity cost is increasing?
The law of increasing opportunity cost is the concept that as you continue to increase production of one good, the opportunity cost of producing that next unit increases. This comes about as you reallocate resources to produce one good that was better suited to produce the original good.
What does high opportunity cost mean?
Assuming your other options were less expensive, the value of what it would have cost to rent elsewhere is your opportunity cost. Sometimes the opportunity cost is high, such as if you gave up the chance to locate in a terrific corner store that was renting for just $2,000/month.
Is it better to have higher or lower opportunity cost?
A high opportunity cost is the amount of assets you will not have gained if you went a certain direction with your business or your investments. If your opportunity cost is low, that means you didn’t miss out on very much.
What is the meaning of business opportunity?
A business opportunity (or bizopp) involves sale or lease of any product, service, equipment, etc. The licensor or seller of a business opportunity usually declares that it will secure or assist the buyer in finding a suitable location or provide the product to the purchaser-licensee.