2006-09-09 08:42:32 · 3 answers · asked by shams k 1 in Education & Reference ➔ Homework Help
Opportunity cost = The cost of passing up the next best choice when making a decision. For example, if an asset such as capital is used for one purpose, the opportunity cost is the value of the next best purpose the asset could have been used for. Opportunity cost analysis is an important part of a company's decision-making processes, but is not treated as an actual cost in any financial statement.
For everyone, opportunity cost comes in to play when your parents (or you as a parent) had to make the decision whether to stay home with the children or join the outside work force.
If I choose to stay home with the children, it will cost me the value of my wage, any health or other benefits, and any increases in wage I may earn in the interim. It will also cost me experience, possible advancement, networking opportunities, etc.
If I choose to join the outside work force, I will give up a lot of positives associated with staying at home and raising the kids. Although these positives don't have a dollar value, they still have VALUE, and it weighs very heavily in making the decision.
It's a BIG decision, and everyone is affected at it by one point or another in their lives.
2006-09-09 08:56:11 · answer #1 · answered by Doe 3 · 1⤊ 0⤋
You must mean opportunity lost. It doesn't mean anything unless you subscribe to the idea that only mankind is in charge of his destiny, thus taking the first offer that comes your way because perhaps no more offers will show up is the natural assumption. Since I believe God directs opportunities by example; me being 59 and intelligent, can know this teaching to be a subterfuge to not trust in God. Living with no hope for a better offer or a better chance is really a shallow way to live. Just try not to burn your bridges to the other offers if you find no more better. This instills politeness and respect in your behavior rather than regret which would be the outcome of thinking only we care about ourselves, or opportunities lost.
2006-09-09 09:03:37 · answer #2 · answered by Marcus R. 6 · 0⤊ 1⤋
.Do you mean experience in a persons life, effecting the opportunities that are available to them? I'm not sure the question is clear, at least to me
2006-09-09 08:47:35 · answer #3 · answered by Anonymous · 0⤊ 1⤋