Answer: C Type: Definition Page: 8 34. As Jack Welch once put it: "Leaders have the courage to make unpopular decisions . As we calculated above, the opportunity cost for me to catch 1 fish is 3/2 coconuts while the opportunity cost for you is 2 coconuts. Because economists like to economize on effort, the succinct term cost is also frequently used in lieu of opportunity cost or economic cost. In other words, we need to sacrifice a benefit in one area to satisfy or benefit another area, like a trade-off. Opportunity-cost evaluation has many practical business applications, because opportunity costs will exist as long as resource scarcity exists. But when you get a job with a ride-sharing service, the problem of opportunity costs becomes prescient. A: False Q: Specialization can sometimes create problems such as boredom and repetitive … Using Resources For One Activity Means That Their Use Elsewhere Must Be Give B. One additional worker can produce 50 additional widgets. Two additional workers may produce 100 additional widgets. Opportunity cost is NOT always measured in dollar terms. So the opportunity cost-- assuming we are in scenario E-- the opportunity cost of 20 more berries is 1 rabbit. D) Higher opportunity costs induce higher output per unit of input. a.there are no alternatives to decisions. b.economies rely on money. An opportunity cost is the cost of spending your time, money, and energy on one thing, instead of another thing. B) Bowed inward. The decision to engage in one activity means forgoing some other activity. Get the detailed answer: Opportunity costs exist because: A. The law of increasing opportunity cost states that when a company continues raising production its opportunity cost increases. 20 Sep 2017. What you sacrifice / What you gain = opportunity costs. Production-Possibility Frontier delineates the maximum amount/quantities of outputs (goods/services) an economy can achieve, given fixed resources (factors of production) and fixed technological progress.Points that lie either on or below the production possibilities frontier/curve are possible/attainable: the quantities can be produced with currently available resources and technology. For example, “cost… It is also known as ‘the next best alternative’. Answer: Related Questions. Opportunity cost is defined as a 'benefit forgone'. Sellers Are Unwilling To Give Up Their Product Without A Price. Opportunity costs exist because: the decision to engage in one activity means forgoing some other a wants are scarce relative to resources. Now this right over here is not a marginal cost, because I'm talking about the cost … Wants are scarce resources are scares but wants are unlimted. Comments. Just because the costs aren’t monetary doesn’t mean that they don’t exist. HELP PLEASE! In coconut production you have comparative advantage because your opportunity cost is lower. Register to view this lesson Are you a student or a teacher? We include the implicit cost because an entity incur a cost simply by choosing opportunity 1 as opposed of opportunity 2. Smart on June 19, 2020: What is the importance of opportunity cost to West African Countries. Economic Profit . 9. The want that is forgone is called the ‘opportunity cost’. Concepts: Opportunity Cost Scarcity Capital Goods Choice Consumer Goods Communism Content Standards and Benchmarks (1, 3 and 15): Standard 1: Productive resources are limited. .do not dwell or cajole." Sarvotarzan. One additional worker can produce 50 additional widgets. c. resources are scarce. Since microeconomics teaches us that resources are generally scarce, and society has endless wants and needs, we need to choose where to allocate the scarce resources and manage them effectively. 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