2006-07-06 23:22:44 · 4 answers · asked by Anonymous in Social Science ➔ Economics
I usually figure opportunity cost based on what I could earn with my money if I put it into some kind of conservative investment. For example, I want to buy some new equipment for my business. The equipment costs $10000. It should make my business much more efficient so I should make more money after I buy it. Opportunity cost figures in to this when I ask the question "Will I make more money by buying the equipment or by putting the $10000 into my conservative investment?" If the answer is strongly in favor of the conservative investment I should rethink buying the equipment.
2006-07-07 00:41:34 · answer #1 · answered by Anonymous · 0⤊ 0⤋
The next best choice for a given resource. Example: The opportunity cost of buying that car is the 5% interest that I would otherwise earn at the bank. Example 2: The opportunity cost of watching tv is the time I could have spent studying.
2006-07-07 11:38:28 · answer #2 · answered by juncapitalpartners 2 · 0⤊ 0⤋
If you are a salesperson, the opportunity cost of answering your question is approximately two missed phone calls, which could be worth up to $49.99 each, for a limited time only!
2006-07-07 11:02:39 · answer #3 · answered by Veritatum17 6 · 0⤊ 0⤋
I have Rs. 200/-. I can go to a movie and restaurent, or I can even buy a book of my liking.
2006-07-07 06:25:23 · answer #4 · answered by tls.bhaskar 3 · 0⤊ 0⤋