Quick Answer: What Is Another Name For Opportunity Cost In Economics?

What’s another word for economic growth?

What is another word for economic growth?economic recoveryboominflationprosperityupturn.

What is opportunity cost and joint cost?

The word “cost” in opportunity cost is in fact designates forgone net benefit. … Joint costs may include direct material, direct labor, and overhead costs incurred during a joint production process. A joint process is a production process in which one input yields multiple outputs.

What is another term for opportunity cost?

Wiktionary. opportunity cost(noun) Synonyms: economic cost.

What is the opportunity cost in economics?

What Is Opportunity Cost? Opportunity costs represent the potential benefits an individual, investor, or business misses out on when choosing one alternative over another. The idea of opportunity costs is a major concept in economics. … Bottlenecks, for instance, are often a result of opportunity costs.

What is opportunity cost simple words?

Opportunity cost is the value of the next best thing you give up whenever you make a decision. It is “the loss of potential gain from other alternatives when one alternative is chosen”. … For example, opportunity cost is how much leisure time we give up to work.

What is the best definition of opportunity cost?

In microeconomic theory, opportunity cost, or alternative cost, is the loss of potential gain from other alternatives when one particular alternative is chosen over the others. In simple terms, opportunity cost is the loss of the benefit that could have been enjoyed had a given choice not been made.

What is opportunity cost diagram?

Definition – Opportunity cost is the next best alternative foregone. If we spend that £20 on a textbook, the opportunity cost is the restaurant meal we cannot afford to pay. If you decide to spend two hours studying on a Friday night. The opportunity cost is that you cannot have those two hours for leisure.

What is the importance of opportunity cost?

Opportunity Cost helps a manufacturer to determine whether to produce or not. He can assess the economic benefit of going for a production activity by comparing it with the option of not producing at all. He may invest the same amount of money, time, and resources in another business or Opportunity.

Which situation is best example of opportunity cost?

Examples of Opportunity Cost. Someone gives up going to see a movie to study for a test in order to get a good grade. The opportunity cost is the cost of the movie and the enjoyment of seeing it. At the ice cream parlor, you have to choose between rocky road and strawberry.

What is opportunity cost explain with numerical example?

Opportunity cost is the next best alternative foregone in choosing the best one. Suppose an economy produces only two goods X and Y. … if the economy decides to produce 2X, it has to cut down production of Y by 2 units because resources are limited. in this case opportunity cost of producing one more unit of X is 2Y.

What is an opportunity cost in economics with examples?

When economists refer to the “opportunity cost” of a resource, they mean the value of the next-highest-valued alternative use of that resource. If, for example, you spend time and money going to a movie, you cannot spend that time at home reading a book, and you can’t spend the money on something else.

What is the opportunity cost of a particular product?

— In the words of Left witch, “Opportunity cost of a particular product is the value of the foregone alternative products that resources used in its production, could have produced.” Opportunity cost is not what you choose when you make a choice —it is what you did not choose in making a choice.

What is the word for economic status?

Socioeconomic status | Definition of Socioeconomic status at Dictionary.com.

Is opportunity cost included in cash flow?

While not specifically included in the definition of a relevant cash flow (as noted above) opportunity costs are also relevant cash flows.

What is another name for economy?

What is another word for economic?cheapinexpensivebudgeteconomicaleconomyreasonablereducedlow-costlow-pricecut-price54 more rows

What is another name for community?

Synonyms forcenter.company.district.nation.neighborhood.people.society.state.

Is opportunity cost a real cost?

The real cost is the price paid by the consumer for consuming a good. Opportunity cost is the foregone cost of the next best alternative present in…

Is economic cost the same as opportunity cost?

Economic cost includes opportunity cost, unlike accounting cost, which only takes into account the amount of money spent. Economic cost is the accounting cost (explicit cost) plus the opportunity cost (implicit cost). Implicit cost refers to the monetary value of what a company foregoes because of a choice it made.

What is opportunity cost kid definition?

Kids Encyclopedia Facts. Opportunity cost is the value of the next best thing you give up whenever you make a decision. It is “the loss of potential gain from other alternatives when one alternative is chosen”.