Question: QUESTION 21 Opportunity Costs Exist Because A. When economists use the word “cost,” we usually mean opportunity cost. Every choice that you make in life has an opportunity cost attached to it, even if it is not easily seen. We include the implicit cost because an entity incur a cost simply by choosing opportunity 1 as opposed of opportunity 2. Two additional workers may produce 100 additional widgets. I have comparative advantage over you in catching fish because my opportunity cost is lower. This information is all measurable, and we can easily perform marginal analyses on data gathered. HELP PLEASE! If we decide and choose which want to satisfy with the available resource, then there are other wants we have to leave unsatisfied. Q: Brent Index is associated with which of the followings? B. Opportunity Cost. A: False Q: Specialization can sometimes create problems such as boredom and repetitive … Opportunity cost exists because a. technology is fixed at any point in time b. the law of comparative advantage is working c. resources are scarce but wants are unlimited d. the value of lost opportunities varies from person to person e. efficiency is measured by the monetary cost of an activity Click here for the SOLUTION The decision to engage in one activity means forgoing some other activity. Opportunity costs would be non-existant in this case because you can get everything you want (meaning that theres nothing you would loose). C) A straight, downward-sloping line. Opportunity Costs exists because. Answer: C Type: Definition Page: 8 34. Production-Possibility Frontier delineates the maximum amount/quantities of outputs (goods/services) an economy can achieve, given fixed resources (factors of production) and fixed technological progress.Points that lie either on or below the production possibilities frontier/curve are possible/attainable: the quantities can be produced with currently available resources and technology. This information is all measurable, and we can easily perform marginal analyses on data gathered. Answer: Related Questions. Opportunity cost is the cost associated with a decision that includes both the explicit and implicit costs. Expenses for room and board. opportunity costs exist because Leadership & Management. Opportunity costs exist because . Opportunity-cost evaluation has many practical business applications, because opportunity costs will exist as long as resource scarcity exists. The total opportunity cost would be $34,000, which would be equal to the sum of the explicit costs ($15,000) and implicit costs ($19,000). Smart on June 19, 2020: What is the importance of opportunity cost to west african countries Comments. a.there are no alternatives to decisions. QUESTION 27 Opportunity costs exist because: O A wants are scarce relative to resources B most decisions do not involve sacrifices or trade offs households and businesses make rational decisions D. the decision to engage in one activity means forgoing some other activity Just because the costs aren’t monetary doesn’t mean that they don’t exist. There may be economies of scale involved. Marginal costs exist because they lead to marginal benefits in most situations. Concepts: Opportunity Cost Scarcity Capital Goods Choice Consumer Goods Communism Content Standards and Benchmarks (1, 3 and 15): Standard 1: Productive resources are limited. One additional worker can produce 50 additional widgets. We have to forgo something in order to satisfy a want. The law of increasing opportunity cost states that when a company continues raising production its opportunity cost increases. D. Buyers Always Have An Opportunity To Go To Another Seller. By doing so she is liable to intangible costs that are not easily accounted for. Specifically, if it raises production of one product, the opportunity cost of making the next unit rises. All the past costs are considered as sunk costs because they are known and given and cannot be revised as a result of changes in market conditions. D) Higher opportunity costs induce higher output per unit of input. .do not dwell or cajole." Introduction Opportunity cost refers to what you have to give up to buy what you want in terms of other goods or services. There may be economies of scale involved. So the opportunity cost-- assuming we are in scenario E-- the opportunity cost of 20 more berries is 1 rabbit. The value of the next-best alternative should be considered when choosing among production possibilities, calculating the cost of capital, analyzing comparative advantages, and even choosing which product to buy or how to spend time. Therefore, people cannot have all the goods and services they want; as a result, they must choose some things and give up others. The law of increasing opportunity costs exists because: a. resources are not equally efficient in producing various goods. b. the value of the dollar has diminished historically because … Q: Opportunity costs exist because A: Resources are scarce but wants are limited Q: The term opportunity cost suggests A: because goods are scarce, in order to get some good you must give up some other good in return Q: An economist would classify 100 shares of Apple Computer stock as capital. C. There Are Opportunities To Find Ways To Reduce Costs. Marginal costs exist because they lead to marginal benefits in most situations. Get the detailed answer: Opportunity costs exist because: A. Q: Opportunity costs exist because A: Resources are scarce but wants are limited Q: The term opportunity cost suggests A: because goods are scarce, in order to get some good you must give up some other good in return Q: An economist would classify 100 shares of Apple Computer stock as capital. d. markets are used. Two additional workers may produce 100 additional widgets. B) Bowed inward. Opportunity costs exist because: the decision to engage in one activity means forgoing some other a wants are scarce relative to resources. Because economists like to economize on effort, the succinct term cost is also frequently used in lieu of opportunity cost or economic cost. c. resources are scarce. 9. An opportunity cost is the cost of spending your time, money, and energy on one thing, instead of another thing. 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