A community for students.
Here's the question you clicked on:
 0 viewing
anonymous
 3 years ago
Good day my name is Dudley and I would like to know how do I calculate the opportunity cost
anonymous
 3 years ago
Good day my name is Dudley and I would like to know how do I calculate the opportunity cost

This Question is Open

anonymous
 3 years ago
Best ResponseYou've already chosen the best response.0When given that a party can produce two goods, take the quantity of the second and put it over the quantity of the first. You now have the opportunity cost of doing 1 unit of the first good, in terms of the second. Bob can do 8 math problems or 4 science problems in one sitting. Put the 4 over the 8 to get 1/2. Bob could have done 1/2 science for every 1 math he chooses to do. That is the opportunity cost. The reciprocal is then also true, He could have done 2 math for every 1 science that he does.

anonymous
 3 years ago
Best ResponseYou've already chosen the best response.0opportunity cost = explicit costs + implicit cost explicit cost= payments to non owners of a firms for their resources. example, wages paid to labor, the cost of electricity. implicit cost= opportunity costs of using resources owned by the firm. example, when you used your own building for the firm, you made no payment to anyone, then you gave up the opportunity to earn rental payments.

anonymous
 2 years ago
Best ResponseYou've already chosen the best response.0OC cost means that you have chosen to be on the Internet altough you could have been hanging out with your friends. When the PRODUCER wants to measure his OC of producing 2 goods (X1 and X2) he can calculate it like this: \[OC= \frac{ DeltaX2 }{ DeltaX1 } = \frac{ p1 }{ p2 }\] THe producer can see clearly how much does it cost to produce an EXTRA UNIT of the good X2, in other words, how much units of the X1 good he has to give up so he could produce an extra unit of X2 good. Hope this helps.
Ask your own question
Sign UpFind more explanations on OpenStudy
Your question is ready. Sign up for free to start getting answers.
spraguer
(Moderator)
5
→ View Detailed Profile
is replying to Can someone tell me what button the professor is hitting...
23
 Teamwork 19 Teammate
 Problem Solving 19 Hero
 Engagement 19 Mad Hatter
 You have blocked this person.
 ✔ You're a fan Checking fan status...
Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.