How do we decide on opportunity cost when we have several opportunities that need to be foregone?
What will be an ideal response?
Answer: We rank all the foregone opportunities, and opportunity cost is the second best opportunity that we forego. Thus we select the best opportunity and rank all the alternative opportunities and use the cost of the second best opportunity as opportunity cost.
You might also like to view...
GAAP based financial statements are sent by:
a. the controller b. the treasurer c. the financial reporting officer d. the managerial reporting officer
What factor(s) contribute to full time work outside of the home losing its appeal to mothers?
a. a lack of work life balance due to the “second shift” b. Their partners are able to contribute more financially, allowing them to be able to stay at home. c. Science shows women desire to stay at home to be with their children. d. unequal pay
Simulation models may contain both deterministic and probabilistic variables
Indicate whether the statement is true or false
Some salespeople are expected to act as marketing managers in their own geographic territories and decide
A. how they will allocate their promotion money and their own time. B. which intermediaries they will rely on or help. C. which customers they will target. D. which products in the company's line they will push aggressively. E. All these answers are correct.