Questions tagged [opportunity-cost]

The tag has no usage guidance.

8 questions with no upvoted or accepted answers
Filter by
Sorted by
Tagged with
2
votes
0answers
29 views

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) ...
1
vote
0answers
20 views

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 ...
1
vote
0answers
34 views

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 ...
1
vote
0answers
136 views

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 ...
0
votes
0answers
87 views

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 ...
0
votes
0answers
41 views

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. ...
0
votes
1answer
34 views

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 ...
0
votes
1answer
94 views

Why is the opportunity cost 0 in this case?

My book says that the opportunity cost of purchase of a specialized equipment that has no alternative use is zero and hence such an expenditure is a sunk cost. However, while calculating the user cost ...