Answered: In the use of the resources, it is…

In the use of the resources, it is important to any the concept of opportunity cost . Define oportunity cost in economic terms

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter4: Extent (how Much) Decisions

Section: Chapter Questions

Problem 1MC

See similar textbooks

Related questions

Q: Maureen's college raises the cost of room and board per semester. This increase raises Maureen's…

A: Opportunity Cost is the cost that arises when in making a decision the value of the best alternative…

Q: What is transaction cost economics?

A: Transaction costs plays an important role in the net returns of an investment. Therefore, the…

Q: 9. The cost of one thing in terms of the alternative given up is called A. O Real cost B. O…

A: The cost of one thing in terms of the alternative given up is known to be as the Option(d) is…

Q: Show how the minimum explicit benefit someone is willing to accept (WTA) to partake in an activity…

A: The monetary worth of an environmental good is generally determined by the monetary value placed on…

Q: What is transaction cost theory? Examples with scenarios.....

A: Transaction costs are the costs associated with purchasing or selling a product or service.

Q: Consider your decision about whether to go skiing for the weekend. Suppose transportation, lift…

A: Opportunity cost refers to the given up benefit in the process of gaining some other benefit.

Q: Consider PPC1 above. The opportunity cost of the 5th unit of X is: Supporting Materials LUeite

A: Answer is given below

Q: Derive and extensively discuss the equi-marginal principle.When it is in the two commodity cases?…

A: An equi -marginal principle plays an important role in cardinal utility analysis. The law of…

Q: a. Explain the following statement : "Surely, as you begin this course, you recognize that time is…

A: "Surely, as you begin this course, you recognize that time is one of the scarcest resources of all.…

Q: ose an airline company has a round trip flight from Houston to Cancun to Houston. Soaring oil prices…

A: It has been stated that deteriorating economic conditions has resulted in collapse of many airlines.…

Q: Define the economic principle of opportunity cost.

A: When another item or activity is chosen, an opportunity cost is described as the amount of a…

Q: B. PP PP PP Consumer Goods Refer to the diagram. The concept of opportunity cost is best represented…

A: Answer: option c (move from B on PP1 to C on PP1) Explanation: Opportunity cost in the case of the…

Q: The principle of opportunity cost: O is more relevant for firms than for individuals. O only refers…

A: 1) is applicable to all decision making Opportunity cost is the foregone income that could have…

Q: miles from an attraction you hadn't known about, but would really like to see. In computing the…

A: ANSWER GIVEN BELOW,

Q: What is Bill's opportunity cost for a pound of berries? Enter a value without commas, symbols or…

A: Opportunity cost in general terms can be understood as the benefits of a good or commodity lost due…

Q: Due to resource scarcity, O economic activities have opportunity costs generally lower than their…

A: Option C Resource scarcity means that all economic activities have a opportunity cost associated…

Q: Production possibility curve shows maximum efficiency means . Oa. Resources are wasted Ob. None of…

A: The PPF curve show the combination of two goods that a nation can produced with given set of…

Q: Why in Pure Specific Factors only Owner of A benefits but in Mixed both owners of K and owners of A…

A: The specific factor model assumes that production factors do not migrate from one sector to the…

Q: In a small town, there's a mousepad factory which employs workers at $8 an hour, for forty- hour…

A: In microeconomic theory, the opportunity cost of a particular activity option is the loss of value…

Q: Complete the following table by computing the opportunity cost of Juanita's time and the total cost…

A: The opportunity (OC) cost is an important concept in microeconomics. It is the loss of possible gain…

Q: The concept of opportunity cost is based on the principle of need. demand. consumption. O scarcity.

A: Economics is defined as the social sciences that study how an economy manages its limited resources…

Q: When you make a choice, whatever you give up as a consequence is called a/an a) priduction cost b)…

A: Resources are scarce and wants are limited. Thus there always exists tradeoff of resources.

Q: Explain briefly but clearly the concepts of scarcity and opportunity cost. Provide an example of…

A: Economic decisions are those decisions in which people will choose what to do with limited…

Q: Which of the following indifference curve the slope of the production possibilities frontire? A,…

A: The production possibility curve, abbreviated as PPC, depicts various combinations of products that…

Q: QUESTION 20 Even though local newspapers are very inexpensive, people rarely buy more than one of…

A: Question 20 Answer) A implies that, for most people, the marginal benefit of reading a second…

Q: When economists measure costs they do not include implicit or opportunity costs. True O False

A: Economics as a subject deals with the allocation of scarce resources among humans with unlimited…

Q: "The opportunity cost of using any IS IS eurrently forgone by using it." This definition of…

A: According to the given question Opportunity cost is the cost of which relatively the value of which…

Q: opportunity cost of 1

A: The ‘comparative advantage’ states that the country trade with each other with that good in which…

Q: The last column of Table 2.2 shows the marginal cost of Good U, which we also assume that the fixed…

A: We know; MC = Change in TC / Change in Q So; Change in TC = MC x Change in Q Average Cost = Total…

Q: Suppose that Sandy can produce 10 economic reports or make 2 sales calls. Suppose Tim can produce 2…

Q: Chip and Joanna are building a new home. Chip can cut 24 pieces of lumber or paint 4 rooms in a day.…

A: Comparative advantage refers to the ability to produce a specific good for a lower opportunity cost…

Q: a. Calculate the opportunity cost based on the following information: Instructions: Enter your…

A: A production possibility frontier (PPF) shows the best conceivable yield mixes of two labor and…

Q: If a society allocates resources so that it produces eficiently, then it is producing at a point A…

A: Meaning of Production Possibility Frontier: The term production possibility frontier refers to the…

Q: Consider the Production Possibilities Frontier (PPF) where tvs production is defined on x- axis and…

A: When production plan is on the PPF and is efficient then the following equation is satisfied;…

Q: (a) Derive the first order condition showing how much labor and capital a producer should use to…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: In economics, the cost of production is defined as the expenditures incurred to obtain the factors…

A: Economics cost includes both explicit costs and implicit costs i.e. opportunity costs.

Q: Remaining "How Did I Do?" Uses: 2/5 Two groups of.students decide to start their own tutoring…

A: Total cost is the sum of fixed and variable costs.

Q: Use the information in the table to answer the below question. Production…

A: Optimal hours is found when MB >= MC, where MB = Change in total benefit / Change in hours MC =…

Q: Explain the difference between a direct cost and an opportunity cost. Illustrate the difference of…

A: * Difference between a direct cost and an opportunity cost:- 1) Direct costs are expenses that need…

Q: Suppose Liam's Automotive, a repair shop: offers two items: oil changes and tires. With all…

A: Oil changes Tires A 0 80 B 10 60 C 20 40 D 30 35 E 40 0 Opportunity cost: From point…

Q: Bonnie and Clyde are next-door neighbors. Both have identical yards with identical pools, The table…

Q: What is Opportunity Cost? And its example

A: Trade helps to specialize in activities which have comparative advantage.

Q: Specify and explain the typical shapes of marginal-benefifit and marginal-cost curves. How are these…

A: A marginal benefit is a maximum amount a consumer is willing to pay for an additional good or…

Q: What is Principle of Unequal Cost (not principle of unequal exchange) and who advocated that…

A: Economics is a branch of social science. It is concerned with the study of the efficient allocation…

Q: Is this a good example of an opportunity cost? “To begin, I began selling prints of my pictures in…

A: Opportunity cost is the value of that alternative which has been foregone and is considered to be…

Q: The technically efficient combination of two products a busniness can produce in the current period…

A: Production is the process by which goods and products are made or manufactured from raw materials or…

Question

100%

In the use of the resources, it is important to any the concept of opportunity cost . Define oportunity cost in economic terms

Video Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Define the term opportunity cost?
Number shown is incorrect. Please explain how to calculate opportunity cost
Define the opportunity cost . What is the significance of opportunity cost in economics.
What does the principle of increasing marginal opportunity costs mean
Define the economic principle of opportunity cost.
What is transaction cost economics?
Which of the following indifference curve the slope of the production possibilities frontire? A, Opportunity cost B, Marginal cost C, Indifference Curve D, Marginal Product
Apply the concept of opportunity cost to the following scenario: You have invested S500 for a roundtrip fare for your vacation trip abroad with a specific airline. However on the way back your flight has gotten delayed due to strike of air workers and hence you will return home a day late. You could pay an additional $200 with another flight to reach home early next day. What is the opportunity cost of missing work for that one day?
Why is economic cost known as opportunity cost? What are included in economic costs?
Distinguish implicit and explicit cost of production give an example for each?
What is the nature of an opportunity cost? a It is always variable. b It is a potential benefit. c It is included as part of cost of goods sold. d It is a sunk cost.
Explain briefly but clearly the concepts of scarcity and opportunity cost. Provide an example of opportunity cost from either your personal or professional experiences. Remember to include explicit costs (able to be measured) and also implicit costs. Then provide an example of an opportunity cost a whole country experiences when society or the government has made a choice.