The Cost Of Opportunity Cost - 1108 Words

Opportunity cost can be defined as the price of a substitute that might be forgone in order to pursue an assured action. The forgone cost. Opportunity cost can also be defined as the best forgone alternative in a scenario where a decision had to be made between some many mutually exclusive or inclusive alternatives (Mankiw, 2009). Simply put opportunity cost is what one is missing out when they make a choice. I could be watching a game of European Soccer or watching a rerun episode of Game of Thrones, but I am doing this assignment, that’s the opportunity cost of doing my assignment. Attending a four-year full-time college has its various opportunity costs, but people still end up attending them. College in America is an expensive investment. The average cost of college is an estimate of $30,000 for a student in a private college while it is approximate $8,000 for a student in a public college as a state resident and approximately $22,000 for an out of state student attending a public college. An average student ends up paying $4,000 in tuition fee. Therefore, the cost of college is $4,000 plus the foregone income the student incurred instead of pursuing employment. Say the student could have gotten a job that pays $8,000 per annum. Then the actual cost of the student partaking in a full-time college schedule would be $12,000 i.e. $4,000 of college fee added to the foregone $8,000 income from employment. To some people, the opportunity cost of going to college is far muchShow MoreRelatedBenefits Of Opportunity Cost For Opportunity Costs1391 Words   |  6 Pagesavailable resources. Hence, to fulfil one wish, we give up another which in economics is termed as the opportunity costs. Due to limited resources and due to unavailability, individuals and society are forced to incur opportunity costs. Opportunity cost is the second best alternative that one gives up. Due to the limitations of resources, human chooses the most viable options as per the benefits and costs. The diagram above shows the Production Possibility Curve. It shows the levelRead MoreCosts and Opportunity Cost Essay1849 Words   |  8 PagesRonald Coase noted,â€Å"The cost of doing anything consists of the receipts that could have been obtained if that particular decision had not been taken.† For example, the opportunity set for this Friday night includes the movies, a concert, staying home and studying, staying home and watching television, inviting friends over, and so forth. The opportunity cost of taking job A included the forgone salary of $102,000 plus the $5,000 of intangibles from job B. Opportunity cost is the sacrifice ofRead MoreOpportunity Cost1518 Words   |  7 PagesOpportunity Cost Paper If you could understand and apply one key concept in economics that would most affect the decisions you make in both your personal and professional life, it would be opportunity cost. That is a bold statement; therefore, you must understand why and how this statement is true. First, you must understand a definition: opportunity cost is the value of a resource in its next best use. These thirteen words are so deceptively simple that to many these words defy understandingRead MoreOpportunity Cost750 Words   |  3 PagesClass Serial No- 4. Economics Assignment- Opportunity Cost Lets start with a small introduction to the topic Opportunity Cost. Opportunity cost is the cost of any activity measured in terms of the value of the next best alternative forgone (that is not chosen). It is the sacrifice related to the second best choice available to someone, or group, who has picked among several mutually exclusive choices. The opportunity cost is also the cost (as a lost benefit) of the forgone productsRead MoreEssay On Opportunity Cost888 Words   |  4 PagesStarting A Business: Opportunity Cost The business-failure rate at 90 percent, which fluctuates when factoring in industry type, deters most entrepreneurs. For this, it is imperative to evaluate the overall opportunity cost when deciding to become a business owner. To produce a strong business plan, one must consider the following— the studying and surveying of the desired business’s market, legal requirements, start-up costs, and the business’s operations. Study the Market Deciding what businessRead MoreThe Opportunity Cost Of Relationships797 Words   |  4 PagesThe Opportunity Cost of Relationships In this article, the author Chrissie Deist described about what people have to give up to get what they want. This is called the opportunity cost. He also illustrated an example of this with apples and oranges. Moreover, the opportunity cost does not always have to be financial cost. Deist did mention that romantic relationships have an opportunity cost as well. He provided some lists of things people sacrifice to be in relationships such as losing their personalRead MoreOpportunity Cost Essay623 Words   |  3 PagesDiscuss the opportunity cost of getting your MBA. What steps and economic factors must a student make when choosing between getting a degree and taking another route in life? Feel free to include aspects from your own decision to pursue your MBA. When considering to starting an MBA program, there are many questions that you have to ask yourself. Can I afford the program? Will it help me to become more marketable in the job industry? Will I have time to dedicate into completing coursework? Read MoreEssay on Economics and Opportunity Cost1005 Words   |  5 Pagesweekly salary. Product market c. The manager buys dinner at Billy’s Cafà ©. Product market d. After he pays all of his employees their wages and pays his other bills, the owner of Billy’s Cafà © takes his profit. Factor market 2. List the opportunity costs of the following: a. going to college - the money you would have earned if you worked instead. b. missing a lecture – takes away from your knowledge of that lesson. c. withdrawing and spending $100 from your savings account, which earns 5Read MoreThe Benefits of College and Opportunity Cost991 Words   |  4 Pagesnormal, bland Economics 101 class, you are almost destined to overhear a professor speak about one of the most important cornerstones of basic microeconomics, opportunity cost. By definition, opportunity cost is what one forfeits in order to pursue something else. A big decision of life that exemplifies the exact definition of opportunity cost is when teenagers go to college. Instead of getting a job at a low level right out of high school, many of todays concerned teens are giving up their abilityRead MoreOpportunity Cost And Its Effect On The Economy1428 Words   |  6 PagesOpportunity cost refers to what you must give up when it comes to decision making when it comes to choice, or it relates to the value of the next best opportunity. Opportunity cost is the implication of scarcity in the economy. It entails where people have to c hoose between different alternatives when determining on how they shall spend their money and their time. The Nobel Price Economist winner Milton Friedman suggested that there is no free lunch for people who are fond of saying that instead