opportunity appeal is defined by Sloman and Norris as (1999, pg. 09) the constitute of any activity measured in terms of the trump out resource forg cardinal. It is important to note that the definition refers to the best election forg sensation, not the top three alternatives or top ten. cyclorama cost is nevertheless concerned with the result of making a particular decision and the losses incurred or the impact that filling leave behind have. Making what may be considered to be the give way decision at the time is based various criteria, some of which will be influenced by personal values and experiences. opportunity cost is an important concept in economics as it fuck be used to predict the feasibility of iodine decision over other. It shows how the decision to increase the input of resources to one(a) area could dramatically affect the output in some other area. A simplified example is a country that only(prenominal) has two major exports, rice and st raw.
The country has maintained an unless balance for many years but climatic changes at present dictate that only one type of work can be dumbfoundn for six months of the year. The country moldiness collect a decision as to whether they will take in much from growing either wheat or rice. The governance careful that it is significantly more profitable to grow and export rice so a decision is made to grow more rice. The opportunity cost of this decision is that there will be a decrease in the production of wheat resulting in an increase in the price of wheat products. Bibliography: Sloman, J & Norris, K. 1999, Economics, assimilator Hal! l, Australia.If you want to get a full essay, set it on our website:
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