Explain what role opportunity cost plays

Assignment Help Business Economics
Reference no: EM133082572

Explain what role opportunity cost plays in the following situations:

a. You are deciding between buying a high-priced flat screen TV vs. a moderately- priced one. (You must include both opportunity cost of high-priced screen and opportunity cost of low priced screen.)

b. You are deciding whether to buy a gift online or go to an actual store to buy it. What is the opportunity cost of buying the gift online? What is the opportunity cost of going to the actual store?

c. Your firm is trying to decide whether to allocate part of its budget to prototyping and testing and new product X. What is the opportunity cost of doing this?

Reference no: EM133082572

Questions Cloud

Draw a schematic diagram showing the way globalization : Draw a schematic diagram showing the way Globalization affects the world.
How economic theories have changed : How economic theories have changed from the 18th to the 21st century?
Performance of two investment advisors : One person's average return is 19%, and the other person's return is 16%. However, the beta of the first agent is 1.5 and the beta of the second agent is 1.0.
Connection of economic situation : 1. What's the connection of economic situation to the fluctuations in the exchange rate? Can you give me an example.
Explain what role opportunity cost plays : Explain what role opportunity cost plays in the following situations:
What is average product of labour : Draw a graph that shows the total output curve in the short run and explain its shape. Make sure you label your axes appropriately.
Probability of missing a monthly payment : You are an economist at a local bank and your task is to review its credit card policy so that your bank can recall some of its credit cards.
Identify the specific type of investment : Identify the specific type of investment required for each situation as follows:
How much will he pay out of pocket : Suppose that John's employer provides a health insurance policy that has $1,500 deductible with 20% coinsurance rate and $6,000 out of pocket maximum.

Reviews

Write a Review

Business Economics Questions & Answers

  Kinked demand curve is most likely to occur when other firms

A kinked demand curve is most likely to occur when other firms. The difference between the price firms would be willing to accept for their goods and the price they actually receive is called. Under conditions of perfect competition, maximum profit o..

  About to act strategically to sustain competitive advantage

State Porters five forces. Give an example along with a brief explanation of a real life business situation in which the business has been about to act strategically to sustain a competitive advantage.

  Calculate the equilibrium price-firm output-total output

All firms in a Cournot monopolistically competitive industry have the same cost function C(q) = 25 + 40q. Market demand is Q(p) = 140 − p. Calculate the equilibrium price, firm output, total output, and number of firms in the industry.

  Use the long-run model of a small open economy

In September 1995, Patrick Buchanan, a Republican candidate for U.S. president, proposed a 10 percent tariff on Japanese imports to the United States, a 20 percent tariff on Chinese imports to the United States, and an unspecified “social” tariff on ..

  Changing income by what dollar amount

Assume m=200$, px=2$, and py=1$. assume income is constant, Px decrease to $1.50, and Py decreases to $.75.

  Find the project capitalized cost

The pavement will cost $2.5 million, and it has a much shorter life of 20 years. If the discount rate is 9%, find the project's capitalized cost.

  Assignment on public goods provision

Consider three consumers indexed by i = {1, 2, 3} with the following demand functions for a public good G: P1 = 100 - 10G, P2 = 200 - 15G, P3 = 300

  Determine the consumption of iphones

Consider a world with two countries (US and China) and two products (Computer and iPhone). In the US it takes 1 worker to make one computer or 1 worker to make

  Gaia theory-earth system theory

Do you think that "Gaia Theory" or "Earth System Theory" is a better name for communicating with non-scientific

  Example of private costs

Which of the following is not an example of private costs?

  General shapes of cost curve graphs and firm supply graphs

In short-run, I see the question on slide 10 (Firm supply) used MC=SAVC to find the crossing point between MC and AVC, so does it mean that we can also take derivative of AVC with respect to Q and set it equal to zero to find minimum or maximum and t..

  Determine whether the battery life

Fifteen batteries are tested to determine whether the battery life is as long as advertised. Four batteries fail the test. From all fifteen

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd