ECONOMICS
OPPORTUNITY COST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the cost of animal feed
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the price animals can be sold for
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the use of the land to grow crops
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the cost of preparing the land for grazing
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Detailed explanation-1: -Example: If a pair of bullock labour earns Rs. 200.00 per day on ploughing, but it can also earn Rs. 250.00 per day in alternative employment of carting hence the opportunity cost of ploughing is Rs. 250.00 per day i.e. the value of the bullock labour in its best alternative use.
Detailed explanation-2: -What are some other examples of opportunity cost? A student spends three hours and $20 at the movies the night before an exam. The opportunity cost is time spent studying and that money to spend on something else.
Detailed explanation-3: -For example, choosing public transportation to travel to a particular destination by foregoing the option of traveling in one’s own car is a good example of opportunity cost, because you end up saving money which needs to be spent on fuel.
Detailed explanation-4: -For example, assume a person is choosing between pancakes and waffles for breakfast. If they choose pancakes, the enjoyment of eating waffles is the opportunity cost. It was the next best alternative (2nd choice) that was not selected.