Television and Internet Nowadays
Opportunity costs
History
The term was coined in 1914 by Austrian economist Friedrich von Wieser in his book Theorie der gesellschaftlichen Wirtschaft. It was first described in 1848 by French classical economist Frédéric Bastiat in his essay "What Is Seen and What Is Not Seen
A benefit, profit, or value of something that must be given up to acquire or achieve something else. Since every resource (land, money, time, etc.) can be put to alternative uses, every action, choice, or decision has an associated opportunity cost.
Opportunity costs are fundamental costs in economics, and are used in computing cost benefit analysis of a project. Such costs, however, are not recorded in the account books but are recognized in decision making by computing the cash outlays and their resulting profit or loss.
* Opportunity CostsOpportunity Cost- the value of the next best possible alternative that is sacrificed when resources are allocated to a specific use.Or What you would have done if you did not make the choice that you did. * Opportunity costs are not always a number. Example- It is Friday night and I have a bunch of different activities that I could do. Go to the movies Stay home and watch the baseball game Go out for coffee If I choose to go to the movies, then my opportunity cost would be either option b or c. Opportunity Costs Opportunity costs analyzes only the next best alternative not a whole set of alternatives.8Opportunity Costs
Opportunity Cost - For example, $ 20 spent on a CD could have been used to buy a T-shirt. The monetary cost is $ 20 but the opportunity cost is the T-shirt.
Opportunity Cost The concept of opportunity cost can be easily illustrated using a model called the production possibility frontier. - The model is a graph which shows all the combinations of goods and services that can be produced by an economy given the available resources and level of technology.
Static Model :This model is called a ‘static
History
The term was coined in 1914 by Austrian economist Friedrich von Wieser in his book Theorie der gesellschaftlichen Wirtschaft. It was first described in 1848 by French classical economist Frédéric Bastiat in his essay "What Is Seen and What Is Not Seen
A benefit, profit, or value of something that must be given up to acquire or achieve something else. Since every resource (land, money, time, etc.) can be put to alternative uses, every action, choice, or decision has an associated opportunity cost.
Opportunity costs are fundamental costs in economics, and are used in computing cost benefit analysis of a project. Such costs, however, are not recorded in the account books but are recognized in decision making by computing the cash outlays and their resulting profit or loss.
* Opportunity CostsOpportunity Cost- the value of the next best possible alternative that is sacrificed when resources are allocated to a specific use.Or What you would have done if you did not make the choice that you did. * Opportunity costs are not always a number. Example- It is Friday night and I have a bunch of different activities that I could do. Go to the movies Stay home and watch the baseball game Go out for coffee If I choose to go to the movies, then my opportunity cost would be either option b or c. Opportunity Costs Opportunity costs analyzes only the next best alternative not a whole set of alternatives.8Opportunity Costs
Opportunity Cost - For example, $ 20 spent on a CD could have been used to buy a T-shirt. The monetary cost is $ 20 but the opportunity cost is the T-shirt.
Opportunity Cost The concept of opportunity cost can be easily illustrated using a model called the production possibility frontier. - The model is a graph which shows all the combinations of goods and services that can be produced by an economy given the available resources and level of technology.
Static Model :This model is called a ‘static