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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.
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Maxine1 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
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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.
