0
Importance of Opportunity cost to an individual are :
1. It influences the individuals household in decision making among his numerous wants.
2. It helps the individual to know how to maximise his satisfaction from his limited resources through drawing scale of preference.
Importance of Opportunity Cost to Firms
1. It helps a firm to decide to use labour intensive instead of capital intensive method to achieve the highest output.
Importance of Opportunity Cost to Government:
1. It enables the government to maximize the welfare of its citizen by choosing the right projects it should spend its scarce resources on.
Wiki User
∙ 11y ago
Veronica Okon
Wiki User
∙ 11y agoto individuals:(1)
it enables individuals to make wisec
choice between competing wants
(2)efficient use of scarce resources
Anonymous
Wiki User
∙ 9y agoThe importance of opportunity cost to individuals is a great one. One is constantly assessing what an item is worth.
Wiki User
∙ 12y ago1 The opportunity cost isalso the cost of the foregone products after making a choice. Opportunity cost is a key concept in economics, and has been described as expressing "the basic relationship between scarcity and choice".
2 The notion of opportunity cost plays a crucial part in ensuring that scarce resources are used efficiently.
3 Thus, opportunity costs are not restricted to monetary or financial costs: the real cost of output foregone, lost time, pleasure or any other benefit that provides utility should also be considered opportunity costs.
4 An opportunity cost doesn't only include monetary costs, but it includes all real costs of making one choice
Abimbola Moradeyo
What is opportunity cost
Anonymous
Yes
Add your answer:
Earn +20 pts
The phrase choosing is refusing means what?
fifty fifty chance that it might mean this: individuals face an opportunity cost with each decision they make
Why does opportunity cost vary?
Opportunity Cost can vary depending on what you are giving up exactly.
What is the opportunity cost of the war in Iraq?
"Opportunity cost" could be opportunities for US/Iraqi contract employment for bettering their nation.
Opportunity cost of saving?
opportunity cost of saving is when you save money then economically spend from your saving this may vary to what person you are
What was the benefit of the soviet union decision to concentrate on heavy industry What was the opportunity cost and who paid it?
The opportunity cost were the consumer goods and services.
Concept of opportunity cost and its importance?
Nice
What is the opportunity cost of importance to individual firms and government?
Check
What is opportunity cost and opportunity benefit?
Opportunity cost is the cost that an opportunity presents. The opportunity benefit is the benefit of the opportunity that is being presented.
What are the importance of opportunity cost?
Opportunity cost analysis plays a vital role in decision making process during selection of alternative projects because one project may be looks feasible in absence of opportunity cost but when considering the foregoing cost of any other alternative may make that project or decision unfeasible or vice versa.
What does the word opportunity cost means?
Opportunity cost means that there is an opportunity to get something in a lower cost. __by Alondra Rico
The phrase choosing is refusing means what?
fifty fifty chance that it might mean this: individuals face an opportunity cost with each decision they make
What calculates the opportunity cost?
Opportunity cost is something for the next porpose.
Is opportunity cost a relevant cost?
Yes, opportunity cost is a relevant cost because it can be used in something more productive.
What are the importance cost sheet?
what are the importance of cost sheet?
What do you understand by the term opportunity cost?
Opportunity cost is what you give up in order to get something else. Paying money is the opportunity cost for ice cream for example.
Why does opportunity cost vary?
Opportunity Cost can vary depending on what you are giving up exactly.
What does increasing marginal opportunity cost mean?
As we decide to choose more units of anything, the opportunity cost of each additional unit will rise. This means that the opportunity cost of the second unit will be greater than that of the first unit. The opportunity cost of the third unit will be greater than that of the second unit. And so forththe law of opportunity cost states that the more of a product that is produced,the greater is its opportunity cost,hence increasing marginal opportunity cost in simple terms refers to an extra or additional opportunity cost of foregoing other products to produce a unit of another product
