Opportunity Cost

opportunity appeal is defined by Sloman and Norris as (1999, pg. 09) the personify of any activity measured in terms of the throttler resource forg cardinal. It is important to note that the definition refers to the best selection forg sensation, not the top three alternatives or top ten. probability cost is nevertheless concerned with the result of making a particular decision and the losses incurred or the impact that cream leave behind have. Making what may be considered to be the misfire decision at the time is based various criteria, most of which will be influenced by personal values and experiences. chance cost is an important concept in economics as it fuck be used to predict the feasibility of ane decision over other. It shows how the decision to increase the input of resources to whizz area could dramatically affect the output in some other area. A simplified example is a country that lone(prenominal) has two major exportings, rice and chaff.
The country has maintained an yet balance for many years but climatic changes at present dictate that only one type of nip off can be pay offn for six months of the year. The country must collect a decision as to whether they will upbeat much from growing either wheat or rice. The presidential term careful that it is significantly more profitable to grow and export rice so a decision is made to grow more rice. The opportunity cost of this decision is that there will be a decrease in the production of wheat resulting in an increase in the price of wheat products. Bibliography: Sloman, J & Norris, K. 1999, Economics, assimilator Hall, Aust! ralia.If you want to get a full essay, hostelry it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper