Topmusicanswers
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 give example?
- What are the three examples of opportunity cost?
- What is an example of opportunity cost in business?
- How do you find opportunity cost simple example?
What is opportunity cost give example?
Examples of Opportunity Cost. 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. ... The opportunity cost of taking a vacation instead of spending the money on a new car is not getting a new car.
What are the three examples of opportunity cost?
Examples of Opportunity Cost
Go on vacation now, or save the money and invest it in a house. Go to college now, in hopes of generating a large return from the college degree several years in the future. Pay down debt now, or use the money to buy new assets that could be used to generate additional profits.
What is an example of opportunity cost in business?
Opportunity cost, on the other hand, refers to money that could be earned (or lost) by choosing a certain option. For example, you purchased $1,000 in new equipment to manufacture backpacks, your number one product. That is a sunk cost.
How do you find opportunity cost simple example?
The formula is not “what I sacrifice minus what I gain.” Instead, it is necessary to look at the ratio of sacrifice to gain. Going back to our example, if you chose to spend an hour working as a bartender instead of as a mechanic, then you are actually giving up ($50 mechanic / $25 bartender) = $2 of opportunity cost.
