Economics
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As a manager of a financial planning business you have two financial planners, Phil and Francis. In an hour, Phil can produce either one financial statement or answer 8 phone calls, while Francis can either produce 4 financial statements or answer 10 phone calls. Does either person have an absolute advantage in producing both products? Should these two planners be self-sufficient (each producing statements and answering phones) or specialize? Be sure to show your work
We make choices as consumers every day. Opportunity cost is defined as a person's "next best alternative" or "the cost of what you give up when you make a choice."
Think of a recent decision you made regarding your career. (going to college online) What was your opportunity cost for making that choice? What was your "next best alternative"?
In this activity you will need to go to the realtor.com website. Follow the instructions for "Finding a Home", and check housing prices for a 3-bedroom, 2-bath house in several Columbus GA. Explain why housing prices vary from city to city. Clearly explain how supply and demand affect the prices of the homes and be sure to show your work.
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//For this part, you should be aware of, what opportunity cost is? You should give a description of opportunity cost and provide a decision regarding your career. I am giving you a sample of opportunity cost which will develop your understanding on it. //
Opportunity Cost
Introduction
Opportunity cost is defined as the cost of any decision measured in terms of the next best alternative, which has been sacrificed by the person. Every person perceives the various alternative courses of action on the basis cost perspective and benefit perspective. It is also called as the alternative cost. The concept of opportunity cost plays a crucial role at all the levels I.e. State level and national level. The opportunity cost is one of the costs that any one considers as relevant for the decision making, which vary from situation to situation (Colander, 2004).The main reason to foregone another best possible alternative is the scarcity of the resources I.e. Monetary resources. To illustrate the concept better, let us take an example of the career opportunities or options. After my post graduation, I have two options in my career life. First option is to join a Job in the reputed firm and the option is to join college for the advance course I.e. P.HD. I preferred going for an advance course rather than to join the job.
The job sacrifice for another best alternative I.e. Advance course is the opportunity cost. After choosing the career option as a student, I lost the opportunity cost of getting a job in the firm which could provide me further growth opportunities, salary increment, etc. If I go for the first alternative I.e. Job, I could be able to earn about $ 400,000 per annum, but after going for the second alternative, I will be able to earn around $ 350,000 per annum. Hence, I lost the opportunity cost to earn around ...
Education
- MBA (IP), International Center for Internationa Business
- BBA, University of Rajasthan
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