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The opportunity cost with reference to an investor would be the income he wud have earned had he used(invested) his money for some oder purpose.
e.g. opp. cost for investing in mutual fund can be the interest of the amt. of investment offered by a bank, (or any other kind of interest, dividend or return) which the investor had to forgo to receive benefit from his investment.
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How is the concept opportunity cost relevant to the economy of West African countries?
How is the concept of opportunity cost relevant to the economy of west African countries
What is opportunity cost when referring to investors?
Although not an actual cost, opportunity cost to an investor is the income he could have earned if he had invested in the next best alternative to the one he actually made.
How is the concept of opportunity relevant to the economy of west African countries?
How is the concept of opportunity cost relevant to the economy of west African countries
Explain with the help of production possibility diagram the concept of opportunity cost?
Opportunity cost is the amount you might lose if you do not take the opportunity. You can write out the graph or find examples online.
Is opportunity cost the rate of return available to an investor for a given level of risk?
No!Opportunity cost is the cost (sacrifice) forgone (or lost) as a consequence of choosing one option over an alternative that may be equally desired. Thus, opportunity cost is the cost of making one choice rather than another. Every action has an opportunity cost! And it is not restricted to only monetary or financial matters: when a person chooses one leisure activity (option 'A') rather than another that was equally desirable (option 'B'), they 'lose' the pleasure etc that would have been enjoyed had they chosen option 'B'. This 'loss' would be the 'opportunity cost' of making choice 'A'. The exercise of choice invariable restricts the chooser from making certain other choices. There are many mutually exclusive choices in life. A person who chooses to marry does so at the 'cost' of the advantages and freeness of singleness. In economics, 'opportunity cost' is a very important concept, because it forces the decision maker to evaluate, not only the benefits of pursuing a certain course, (e.g. course 'A'), but also to evaluate the direct loss of other opportunities that could be taken if course 'A' is not taken. For example, an investor may decide to put all his money into financing a particular project. But, by using the 'opportunity cost' concept, he also is well aware that he does so at the 'opportunity cost' i.e. the cost of lost opportunity, the opportunity to get, perhaps bigger or more secure returns elsewhere.
How is the concept opportunity cost relevant to the economy of West African countries?
How is the concept of opportunity cost relevant to the economy of west African countries
Concept of opportunity cost and its importance?
Nice
What is opportunity cost when referring to investors?
Although not an actual cost, opportunity cost to an investor is the income he could have earned if he had invested in the next best alternative to the one he actually made.
How is the concept of opportunity relevant to the economy of west African countries?
How is the concept of opportunity cost relevant to the economy of west African countries
How is the concept of opportunity cost relevant to the economy of west African countries?
How is the concept of opportunity cost relevant to the economy of west African countries
Why is the cost of capital concept so important?
Cost of capital is cost of debt and cost of equity. The concept of cost of capital is important as it depicts the opportunity cost of making a specific investment.
Explain with the help of production possibility diagram the concept of opportunity cost?
Opportunity cost is the amount you might lose if you do not take the opportunity. You can write out the graph or find examples online.
Is opportunity cost the rate of return available to an investor for a given level of risk?
No!Opportunity cost is the cost (sacrifice) forgone (or lost) as a consequence of choosing one option over an alternative that may be equally desired. Thus, opportunity cost is the cost of making one choice rather than another. Every action has an opportunity cost! And it is not restricted to only monetary or financial matters: when a person chooses one leisure activity (option 'A') rather than another that was equally desirable (option 'B'), they 'lose' the pleasure etc that would have been enjoyed had they chosen option 'B'. This 'loss' would be the 'opportunity cost' of making choice 'A'. The exercise of choice invariable restricts the chooser from making certain other choices. There are many mutually exclusive choices in life. A person who chooses to marry does so at the 'cost' of the advantages and freeness of singleness. In economics, 'opportunity cost' is a very important concept, because it forces the decision maker to evaluate, not only the benefits of pursuing a certain course, (e.g. course 'A'), but also to evaluate the direct loss of other opportunities that could be taken if course 'A' is not taken. For example, an investor may decide to put all his money into financing a particular project. But, by using the 'opportunity cost' concept, he also is well aware that he does so at the 'opportunity cost' i.e. the cost of lost opportunity, the opportunity to get, perhaps bigger or more secure returns elsewhere.
A popular modle used to illustrate the concept of opportunity cost is?
production possibility frontier
A popular model used to illustrate the concept of opportunity cost is?
The Production Possibilities frontier/curve
What is opportunity cost and can you provide an example to illustrate its concept?
Opportunity cost is the value of the next best alternative that is foregone when a decision is made. For example, if you choose to go to a concert instead of studying for an exam, the opportunity cost is the potential higher grade you could have achieved if you had studied instead.
Can you explain the concept of opportunity cost using a money analogy?
Opportunity cost is like choosing between spending money on a new phone or a vacation. If you pick the phone, the cost is not just the price of the phone, but also the missed opportunity to go on vacation. So, the opportunity cost is the value of the next best alternative that you give up when making a decision.
