Opportunity Cost
| ← Vanilla Plant | Youth Violence → |
Opportunity cost involves a decision that is arrived at by basing on various ideas that are supposed to be given up for the sake of the next best alternative, which in this case it is supposed to be as a result of the agreed decision. Therefore, this indicates that any decision that is made and it involves making choice between two or more alternatives has a case of opportunity cost. In these two cases, Michelle’s opportunity cost of producing potatoes is the difference between the decisions of selecting potatoes over chicken, and in this case it is 50 / 200 = 0.25 chicken. This indicates that Michelle will experience an opportunity cost of 0.25 chickens for 1 pound of potatoes, in relation to the idea that she has decided to produce potatoes instead of chicken. On the same case, Michelle’s opportunity cost of producing chicken is the difference between the decisions of selecting chicken over potatoes, which will result to 200 / 50 = 4 pounds of potatoes. This indicates that Michelle will experience an opportunity cost of 4 pounds of potatoes for 1 chicken, in relation to the idea that she has decided to produce chicken instead of Potatoes.
James’ opportunity cost of producing potatoes is the difference between the decisions of selecting potatoes over chicken, and in this case it is 40 / 80= 0.5 chickens. This indicates that James will experience an opportunity cost of 0.5 chickens for 1 pound of potatoes, in relation to the idea that he has decided to produce potatoes instead of chicken. On the same case, James’ opportunity cost of producing chicken is the difference between the decisions of selecting chicken over potatoes, which will result to 80 / 40 = 2 pounds of potatoes. This indicates that James will experience an opportunity cost of 2 pounds of potatoes, in relation to the idea that he has decided to produce chicken instead of Potatoes.
Michelle has an absolute advantage in potatoes, while James has an absolute advantage in chicken. In this case, Michelle will be able to make more returns when opting for potatoes as compared to chicken, and vice versa for James. On the comparative basis, Michelle has a comparative advantage of potatoes over James, since she is able to produce a large a mount of potatoes as compared to what James is producing. On the other hand James has comparative advantage of chicken over Michelle, since the option chicken does not favor her when compared to her option of potatoes.
Specializing completely in the area in which they have a comparative advantage indicates that Michelle will opt for potatoes while James major in chicken, and considering that they will be trading at a rate of 2.5 pounds of potatoes for 1 chicken, they will not all be better off. In this case, the initial trading rate is supposed to be 5 pounds of potatoes for 1 chicken, and looking at the projected trading rate it indicates that Michelle’s rate of production will reduce by a half, so she will end up producing 100 pounds of potatoes, compared to 40 chickens for James on annual basis.
The above idea of opportunity cost is considered to be significant in many ways, especially concerning its application to variety of issues within the society and the nation at large. In the long run, the knowledge of opportunity can be applied in the following areas that are found to have significant benefits to the society.
- Selection of consumers for a certain product or service
- Determining of effective production potentials
- Determining cost of capital in businesses
- Helping in time management, especially during transactions
- Determining a better career choice
- Carrying out of a comparative advantage analysis, especially when determining the best option of the choices one has in terms of sales and returns generation.
- Youth Violence
- Russian Oppression From the Tsars to the Present
- Vanilla Plant
- Relativism and Morality
|
Mark C.
Mexico City, MX
|
|
|
Thanks to EssaysEmpire.com, I was able to keep my GPA up and will be graduating soon. I really needed assistance with my writing. I aced everything else, but I have always had problems expressing myself in writing. The writers at EssaysEmpire.com took the ball and ran with it! Because of them, I am going to graduate. Thank you, from the bottom of my heart, for all of the valuable assistance. |
||
|
Fred H.
Berkeley, CA
|
|
|
Thank you for doing what you do. You helped a lot of my friends, and now you have helped me. You provide a valuable service to students who need to get over writing hurdles. |
||
|
Sarah H.
Brooklyn, NY
|
|
|
As always, I can count on EssaysEmpire.com to never let me down. I had to place an emergency order and was worried that I had not given the writer enough time to do a good job. I was wrong. They did a tremendous job! Thanks ever so much! |
||
|
Willow P.
Park City, UT
|
|
|
You guys do top-notch work. Time after time, I have had to rely on your help and I can say honestly that you have never let me down. Thank you so much for coming through for me every time. I am not a good writer. I try. I study hard, but when I need help, you are always there to give it to me at an affordable price. |
||
|
Brianne H.
Tampa, FL
|
|
|
The paper that I purchased from EssaysEmpire.com was well written. Thank you. I will have another order for you soon. Since I was so happy with the way things went, I see no reason to use any other writing service. Your service delivers the goods, just like you say you will. |
||
|
Tricia A.
Calabasas, CA
|
|
|
Thanks for everything. I like your writing service a lot. Your staff is friendly and they’re always open. The papers that you’ve written for me have been very good. |
||
|
Mary R.
New York
|
|
|
Writer #48376 was very easy to work with. My professor made some changes to his requirements after he had assigned the paper. All I had to do was call your customer service and request to speak with the writer directly. Was able to relay the changes that my professor wanted, and he (writer #48376) accommodated them with no problem. I thought that was great. No headaches and perfect work. I couldn’t ask for a better experience! |
||
|
Jaffar M.
Salt Lake City, UT
|
|
|
My sincere thanks for a job well done. My professor loved my paper and commended me for handing in the one that your writing service helped me with. The paper flowed very well. It was logical and intelligent-sounding. I was very pleased overall. |
||
|
Della M.
Belfast, IR
|
|
|
I had to turn on my laptop for the express purpose of writing to you. I had to let you know what lifesavers you people are! I had never even considered hiring a professional writer to help me and was almost resigned to dropping out of school altogether. Then, I thought about it, and asked myself what it would hurt to try EssaysEmpire.com for just one paper. That paper was written astonishingly well! From that one paper, I learned many of the things that I did not know about writing. It was perfect, so I learned all about formatting in the APA style. I learned a lot, so I want to thank you for that. |
||
|
Carolyn C.
Norman, OK
|
|
|
My paper was completed 3 days earlier than I had requested it. It needed no revisions and was much better than I had imagined. Thanks, EssaysEmpire.com! |
||
|
Grace G.
London, UK
|
|
|
I was quite satisfied with the results of my paper order. EssaysEmpire.com sure has some good writers! I thought it might just be some college kids who were writing in their spare time to earn some extra bucks. No! EssaysEmpire.com hires legitimate writers. They all seem to be well educated and intelligent, too. My paper was terrific! |
||
|
Glen M.
Oakland, CA
|
|
|
Your writers are awesome! I got an A and two A+’s on the papers that they wrote for me! |
||
|
Millie P.
Jackson, WY
|
|
|
Thanks goes out to the writer who filled my order. He did everything right the first time around. I had to ask for one tiny revision, but that was my own fault for leaving it out of the directions. |
||
|
Melissa C.
Rochester, NY
|
|
|
I am completely satisfied with the paper I purchased from your company. I only wish I had known about you last year when I took an F grade for not being able to complete a paper on time. The work you did was marvelous. Whenever I find myself falling behind in my school work, I will be sure to pass along some of my more difficult written assignments to you |
||
|
Cleo C.
Wichita, KS
|
|
|
To the writers at EssaysEmpire.com: Next week, I will be graduating with a degree in clinical psychology. Over the course of my college years, I have had to turn to you for help many times. Each and every time, you produced some of the highest quality writing my professors had ever seen. Because of you, I was able to keep a high grade point average and get into an excellent grad school. There are simply no words adequate enough to fully express my appreciation, so I’ll simply say, “thank you” and let it go at that. Please know that you are appreciated. |
||
|
Glynnis H.
Ft. Smith, AR
|
|
|
Hello! I just had to stop what I was doing to let you know how grateful I am that I found your excellent writing service. I have had to use you three times now, and each time, I have been 100% satisfied with the work that you did. Your writers are absolutely outstanding. I am very, very happy with everything you have written for me. |
||
|
Bryce F.
Capistrano, CA
|
|
|
Thanks for the excellent job that you guys did on my history assignment and my bio research paper. I never could have done this on my own. |
||
|
Sanjaya K.
Calcutta, INDIA
|
|
|
I am fully satisfied with my research paper. It cannot have been easy for your writers to compose! The topic is called, "PARALLEL ALGORITHM FOR MULTI-DIMENSIONAL MATRIX MULTIPLICATION OPERATIONS REPRESENTATION USING KARNAUGH MAP”. That is a very difficult topic! However, your writers developed an algorithm, included a diagram and a graph and related multi-dimensional matrix multiplication perfectly. I am thrilled with the work I received and will be using your company again in the near future. Thank you for all of your hard work on this project. I love it! |
||
|
Tiffany E.
Monroe, LA
|
|
|
I am 100% satisfied with the writer that you assigned to my project. This person understood exactly what I needed, even though I’m not the best communicator and the instructions were tedious and difficult. I felt certain I would have to send my paper back for a number of revisions, but I didn’t. The writer was able to convey exactly what I wished to express and he did it in record time!Thanks for everything. EssaysEmpire.com is the greatest! |
||
|
Gaia W.
Lexington, OK
|
|
|
EssaysEmpire.com gets an A+ for being the best writing service a student could ever ask for! Thank you for your continued high quality work, guys. I have purchased 6 papers from you over the last two years and they have been exquisite in their workmanship and content. I really appreciate how hard you guys work to please your customers. I’m not surprised that you are reported to be the best writing company online or off. To me, you are exactly that. |
||