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webpocket
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Pridružen/-a: 06.07. 2022, 13:45
Prispevkov: 13
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 Objavljeno: 28 Jul 2022 14:18 Naslov sporočila: calculate opportunity cost |
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As a result of choosing one option over another, you calculate opportunity cost (also called an implicit cost). Intangibles like time with friends and family and tangible trade-offs like money come into play.
5 Examples of Opportunity Cost in Business Decisions and Everyday Situations
5 Examples of calculate opportunity cost in Business Decisions
calculate opportunity cost
You can calculate opportunity cost in a variety of situations, from everyday choices to business decisions. Here are some examples:
There’s an 18-year-old girl who’s looking for a job as a financial advisor. We need her help. Opportunity cost is what she would have made if she worked.
Imagine, for example, a high-schooler getting $50 for her birthday. With the money he was given, he buys himself new shoes. There is an opportunity cost here since they could have purchased something else with the $50, but chose to buy shoes, so they can’t buy anything else now.
One manufacturer can only fulfill one order. First order profits are $50, second order profits are $75. A manufacturer maximizes profits on the second order by turning down the first order. It costs the manufacturer $50 in opportunity costs to choose a $75 profit over a $50 profit.
An investor or a depositor would like to earn interest on their money. Stocks are a good option. When you invest in the stock market, you’re giving up the certainty that your money will grow.
You offer a teenager three summer jobs: a full-time one that pays $15 an hour, a part-time one that pays $10 an hour, and a night-shift job that pays $20 an hour. Teens who work night shifts can’t go out after work with friends. They can go full-time if they want. In this case, the best option would be a night shift job, which pays $15 an hour and allows his or her friends to hang out at night. When they decide to work the night shift for $20 an hour, they will miss out on those opportunities. |
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