A non-economist calculates that these costs sum to $0.70/mile and uses this figure to compute that the 400 mile trip will cost $280 by car. The non-economist concludes that you should take the bus, because it is cheaper.…
-According to the article “opportunity cost” refers to “the highest valued benefit that must be sacrificed as the result of choosing an alternative”.…
How far would you go to purchase a pack of cigarettes? The Real Cost Commercial starts off with a scene of an outside night time sight of a gas station. A teenage girl that appears to be young goes into the gas station and ask for a pack of cigarettes. She hands the worker a five-dollar bill and her photo ID, the worker informs the young girl that she does not have enough money to buy the cigarettes. The young teenage girl looks around frantically and quietly while shock and starts scratching at her cheek. While scratching at her cheek the skin begins to lift and she pulls it off and hands it to the worker; then the worker gives her the pack of cigarettes. “The Real Cost” commercial…
Former Steelers’ running back Franco Harris created Super Bakery Inc., in 1990. “Super Bakery is a virtual corporation, in which only the core, strategic functions of the business are performed inside the company. The remaining activities—selling, manufacturing, warehousing, and shipping—are outsourced to a network of external companies”. When management suspected that the established cost method was making a sizeable difference in its real cost structure, it wanted a new way of assigning their costs. Management also supposed an extensive difference in the cost of serving their customers in other parts of the country. However, its established methods were distributing costs over the entire customer foundation. Management reviewed and eventually altered their system to recognize the costs associated with the task performed in the company.…
This does an effective job showing that Benjamin Franklin, although he was a prominent figure during his time, also had some regrets about the way he chose to live his life at a young age. I felt like…
This examination for ideological elements has begun to build a picture of America’s College Promise’s costs and benefits, an approach to typology favored by James Q. Wilson. Wilson asks whether costs and benefits are limited to a small group or spread widely. Spreading costs makes it easier to enact a policy as no one group feels the pinch (Birkland, 2015, p. 215-216). This would be the case with America’s College Promise as the costs would be covered by general revenues of the state and federal governments (American Association, 2015). A portion of the public funds now spent on financial aid would be re-directed to the new policy, but free tuition for more well-off students would be a new expense. Even if moderate conservatives favor the policy, those at the far right would likely object. The benefits would also be spread widely, however, with a notable shift to middle and upper-middle class traditional-aged students and the suburban community…
Opportunity Cost- The money or other benefits lost when pursuing a particular course of action instead of a mutually-exclusive alternative.…
“Well done is better than well said” (Poor Richard’s Almanac). Benjamin Franklin not only thought of quotes to help guide our daily lives, he lived them. Arguably the greatest genius of his time, Franklin was a hard worker, relentless learner, and passionate thinker. From a general perspective Franklin is a man who worked diligently in school, studied untiringly, and excelled in most everything he did. Although he was a dynamic learner, he never had a stable childhood, much less a formal education. Using his passion and thoughts of right and wrong, Franklin shaped himself the legacy he has today. A look into the life of Benjamin Franklin’s patriotism and ingenuity shows us much more than meets the eye about this incredible man.…
Opportunity cost is the value of the next best alternative that is given up in order to pursue a certain choice. In other words, it is the cost of choosing one option over another. For example, if a person chooses to spend their money on a new phone, the opportunity cost would be the other things they could have purchased with that money, such as a new laptop or a vacation. This concept is…
This portrait, which depicts Franklin as a learned scientist and inventor, was one of his favorites. Pictured on the left is the signal-bell apparatus Franklin devised to detect the presence of electrically-charged clouds. The bolt of lightning , seen through the open window, became an attribute closely identified with Franklin. At Franklin's death French philosopher/scientist Jacques Turgot wrote: "He seized the lightning from the sky and the scepter from the hand of tyrants."…
People face trade-offs daily. As humans, we make decisions that require trading off one action against another [Principle of Microeconomics. 2012. 4]. The process of giving up something we enjoy in order to gain another good has been part of our human characteristics from day one. As a society, we should make good decisions only if we understand that there are other available options that will benefit us [Principle of Microeconomics. 2012. 5]. By definition, opportunity cost is the cost of an alternative action that must be forgone in order to pursue a certain action. Opportunity cost is present anytime we must make choices. As rational thinkers, we prefer to choose actions that will not only maximize our time, but also benefits our future.…
Opportunity cost is a decision between two conceivable choices where you judge the advantages of one decision over the other. Opportunity cost is an immediate implication of scarcity. Individuals need to pick between various options when choosing how to invest their time and money.…
An opportunity cost is essentially the primary lost opportunity sacrificed as a result of a specific choice (Sexton, 2012). . When alternate outcomes are prohibited or otherwise affected by the pursuit of a specific decision, the choice or choices unmade are opportunity costs.…
Discuss the opportunity cost of getting your MBA. What steps and economic factors must a student make when choosing between getting a degree and taking another route in life? Feel free to include aspects from your own decision to pursue your MBA.…
In Section 2, you learned about costs and profit. Now, you'll apply what you learned.…