Respuesta :
Demonstrating opportunity cost is done through production: Possibility
Opportunity cost is a type of cost that incurred when we choose to make a certain decision over another.
In production, Opportunity cost will occur when we're choosing the possibility of what product we should produce, how we should produce it, or for whom we produce it
Opportunity cost is a type of cost that incurred when we choose to make a certain decision over another.
In production, Opportunity cost will occur when we're choosing the possibility of what product we should produce, how we should produce it, or for whom we produce it
Demonstrating opportunity cost is done through production possibility.
Further Explanation:
The opportunity cost has to be demonstrated by using production possibility frontier or the curve. Curve here shows the production of one material increases when the production of the other material reduces. For example, tea and coffee. When we choose an option from the alternative opportunity cost is incurred which does not enjoy the benefit of the best choice. It is the loss of the potential gain from the other alternative if an alternative is chosen. It is the benefit that is received if we do not select the next best option. This is the most important concept of economics. They have a relationship between scarcity and choice. It helps in using scarce resources efficiently. They are not restricted to any monitory or the financial cost. The output cost is the revenue earned by the alternative use. This required sacrifices. If there is not at all any sacrifice we will not get opportunity cost. It is very significant in business decisions. This term was used by David L. Green. Franklin coined a phrase where he associates time with money.
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Answer Details:
Grade: High School
Chapter: Opportunity Cost
Subject: Social Science
Keywords:
Potential gain, relationship, scarcity, choice, monitory, financial cost.
