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The opportunity cost rate is the rate of return you could earn on an alternative investment of similar risk.
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∙ 8y ago
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Opportunity cost of holding money?
The opportunity cost of holding money is the nominal interest rate.
Is the opportunity cost rate a single number used in all situations?
No, the opportunity cost does not rate a single number that is used in all situations.
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.
Is an investment an implicit cost?
Yes, investment is an implicit cost because it is a firm investing their own money in something that (by definition of an opportunity cost) could have been invested in something else. Investment is the opportunity cost of a firm using their own money, and whether or not the opportunity that the firm invested in is worthwhile is defined by the NROR (the normal rate of return).
What is the opportunity cost to a fully employed economy of increasing capital investment?
A fall in consumption
Opportunity cost of holding money?
The opportunity cost of holding money is the nominal interest rate.
Is the opportunity cost rate a single number used in all situations?
No, the opportunity cost does not rate a single number that is used in all situations.
What is shadow wage rate?
Shadow wage is the opportunity cost of labour, used in cost benefit analysis.
In case of internally generated funds the opportunity cost to the firm is?
lendind rate
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.
Is an investment an implicit cost?
Yes, investment is an implicit cost because it is a firm investing their own money in something that (by definition of an opportunity cost) could have been invested in something else. Investment is the opportunity cost of a firm using their own money, and whether or not the opportunity that the firm invested in is worthwhile is defined by the NROR (the normal rate of return).
What is the opportunity cost to a fully employed economy of increasing capital investment?
A fall in consumption
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
What calculates the opportunity cost?
Opportunity cost is something for the next porpose.
Explain why retained earnings have an associated opportunity cost?
Retained earnings have an opportunity cost associated with them because they can be invested to earn more rather than keeping them idle. For example reatined earnings can be invested in a savings account in a bank and earn interest but if this is not done the are loosing some extra income and so if they are invested somewhere else, the bank rate will be the opportunity that has been lost. Opportunity cost is the real cost of choosing one thing and not another.
Is opportunity cost a relevant cost?
Yes, opportunity cost is a relevant cost because it can be used in something more productive.
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.
