# Questions tagged [opportunity-cost]

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### What Interest Rate used to calculate opportunity cost?

What Interest Rate used to calculate opportunity cost (Calculating Future Value/Present Value)? Usually in the textbook it said that the rate used is government bonds interest rate(since it's risk ...
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### opportunity cost when inside production possibility frontier

I am a bit confused about whether there is a opportunity cost moving from within the PPF to be closer to the PPF and use some of the unemployed resources. I current thinking is that there is zero ...
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### Opportunity Cost Comparisons

Suppose we have 1 firm and the firm has three options: (1) Produce and get \$100 in revenue - \$200 in costs = -\$100 in profit. (2) Temporarily shut down and pay fixed costs = -\$50 in profit. (3) ...
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### What is the opportunity cost of going to a football match?

According to this video: Opportunity Cost of a choice is what you gave up to get it. Now, let us read the following question: You are going to a football match next Saturday evening, you have ...
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### What to include in a unit economics calculation of a car rental business?

I'm doing a unit economics per order calculation on a car rental business and I'm not sure what costs should I include in it. So far I have added CAC, maintenance, labor, car depreciation. Should I ...
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### Absolute and Comparative Advantage Help

I started studying microeconomics and I am having trouble figuring our how can I find the "?" values in this table? If someone could help me I would be really grateful. ...
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### Opportunity cost of goods provided free of cost

If the government of a country decides to provide certain good free of cost to its citizens, what can one say about the opportunity cost? Government is certainly using the revenues raised from the ...
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### What is the opportunity cost of doing something in your spare time?

My university is using this textbook. The text clearly states, “Economists use the term opportunity cost to indicate what must be given up to obtain something that is desired.” This leads me to ...
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### How has decreasing quality (or the need to pay more for the same quality) tracked with inflation?

I'm trying to identity a missing variable that could affect poor and middle class consumers more than more wealthy/resourceful individuals. Assuming that there are decisions regarding cost reductions ...
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### 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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### 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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### 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 offered ...
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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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### 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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### 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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### 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 ...