Purchase Solution

Opportunity cost

Not what you're looking for?

Ask Custom Question

Explain "opportunity cost" and how it relates to the definition of economics. To illustration this concept, give your explanation of the following decisions that would entail the greatest opportunity cost:
a.Allocating a square block in the heart of New York City for a surface parking lot, OR
b. Allocating a square block at the edge of a typical suburb for such a lot?

Purchase this Solution

Solution Preview

The economic resources such as goods and services are limited. The scarcity of resources restricts options and demands choices. "Because we can't have it all, we must decide what we will have and what we must forego"(McConnell & Brue, 2008, p. 4). Many economists use the phrase "there is no free lunch" to highlight the fact that even if one is treated to a free lunch, somebody else is paying for that lunch and that resources that could have been used to produce another product or service have been used. Since society could have used those resources used to give out "free lunch" to produce other goods or services, it forgone other goods and services. The products and services ...

Solution provided by:
  • MBA, Aspen University
  • Bachelor of Science , Berea College
Recent Feedback
  • "Thank u"
  • "Thank You!"
  • "Thanks!"
  • "Thank you so much"
  • "Great job...thanks."
Purchase this Solution

Free BrainMass Quizzes
Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

Operations Management

This quiz tests a student's knowledge about Operations Management