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Questions tagged [opportunity-cost]

The tag has no usage guidance.

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Economic Questions [closed]

Drinking one more cup of coffee this afternoon will give me that jittery feeling, but it will keep me awake for four more hours to work on my assignment. The principle underlying this is: (a) none of ...
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How is “opportunity cost” an useful concept? Even when it does exist?

How is "opportunity cost" an useful concept? Even when it does exist? What use does it serve?
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What happens to equilibrium health stock if interest rate goes up for other capital goods?

The question above/title is one of the questions in our previous exam. Is the answer a movement along the MEI (Marginal Efficiency of Investment) curve since the cost of capital or opportunity cost of ...
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3answers
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Production Possibility Frontier and Opportunity cost

The following is a list of data points on a PPF, answer questions regarding opportunity cost. What is the opportunity cost of producing the first 500 Toyota? The opportunity cost of producing the ...
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3answers
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What is Opportunity Cost?

Suppose you have 2 activities, A and B. Doing activity A gives a return of 100 dollars, doing activity B gives a return of -50 dollars. What would be the opportunity cost of choosing activity B? 100 ...
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1answer
108 views

What is the opportunity cost if I choose the option of highest value

I had a confusion about opportunity cost. Suppose I have three alternatives which can be completed in same time, and can provide me the value of \$30, \$10 or \$40. If I choose the one with \$10 then,...
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1answer
58 views

Did I calculate maximum price of machine correctly?

Problem: A firm wants to buy a machine for its factory. It will work for two years. During the first year it will yield 240 thousand roubles and during the second year it will yield 200 thousands ...
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1answer
177 views

Does Average Total Cost (ATC) include implicit opportunity costs?

Does the average total cost include opportunity costs? If so, are these opportunity costs considered fixed costs or variable costs? How are they calculated.
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2answers
245 views

Does Game theory consider opportunity cost?

Morton Davis in his book Game Theory: A non-Technical introduction brings the following example of a non-zero sum game (pg.73) : A Buisness Partnership A builder and an architect are jointly ...
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Question on an argument in “The Myth of Absolute Advantage”

Brandis (1967) argues that "absolute advantage does not exist" and "that it is a logical impossibility". (See also comment, comment, reply.) My question here is very narrow and specific. I do not ...
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1answer
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Question regarding Opportunity cost [closed]

Tom earns 400 an hour as an attorney and is considering paying someone 1000 to paint his house. If he decides to do it himself, it will take four hours. What is the opportunity cost for doing it ...
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1answer
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How to analyze small human activities from the economical standpoint?

If a company has project A and project B it can decide what is more profitable. The math in this example is straightforward. If human has activity A and activity B, how can someone calculate what is ...
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1answer
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Is opportunity cost market prices of input goods or income from alternative investments?

Reading my development economics textbook, I was informed that the opportunity cost of a private investment is the market value of the wages, goods and services used for the investment. Here's a ...
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2answers
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What would make a restaurant offer all-day breakfast?

Some restaurants particularly fast food ones offer breakfast food only during, well, breakfast hours. Other restaurants however offer breakfast food throughout their opening hours. Some restaurants ...
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1answer
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Have any economists ever argued that the notion of opportunity cost should be done away with?

I hold the opinion that the notion of opportunity cost "muddies the intellectual waters" so to speak, and I'd like to know if any professional economists have expressed this sentiment, or similar. ...
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Piracy/File sharing - Why aren't songs, movies or books given for free?

Why aren't songs, movies or books given for free (+ads)? i. Every minute, people are pirating and there is no stopping that. If people see 0.99 for a song on iTunes and 0.00 for a song on a torrent ...