Essay on Opportunity Cost

Submitted By jyw5515

Words: 325

Pages: 2

Open Document

Opportunity Costs and Hidden Inventions I disagree that I am not wealthy enough to have this Bugatti because in reality, who is wealthy or not wealthy enough to afford what the car is really worth? We really do not know. I believe that the companies who produce these expensive cars only price them as high as they do because they know only a certain percentage of wealthy people will buy them. If the producers of these cars priced them at what they were really worth, very few people would buy them. If these car producers price their cars at a ridiculously high price, a small percentage of wealthy people will still buy these cars. Moreover, no matter what price these cars are marked for, not many will be bought. A company may be thinking, for example, if only 100 of these cars will be sold regardless of the price; why not jack up the price as high as possible? The company may lose a few sales here and there from buyers with a spending limit, but the majority of the people buying these cars most likely do not have a spending limit. With companies pricing items higher than what they are really worth, it is hard to decipher who is wealthy enough to own an item or not. Consequently, it does not really even matter who has the car if they do not even have any expenses to pay for it. Companies may also be jacking up the price of these cars so only a certain population of wealthy people will buy them, which in turn sets a precedent for the price of what people are willing

Opportunity Cost

1a.) Opportunity cost is best described by Pearson’s as, “The opportunity cost of any action is the value of what is given up-the next-highest-ranked alternative- because a choice was made” (Miller [30]). Before enrolling in this Economics course, I was unaware that there was an opportunity cost of every decision I make. Becoming aware of opportunity cost has rewired my way of thinking. If I want to go to Jiu-Jitsu, for example, I ask myself what is the cost of going tonight and is the best use of…

Words 1242 - Pages 5

Opportunity Cost In College

Opportunity costs is also something that economists takes in consideration. Basically, what opportunity cost is what a person sacrifices when they choose one option over the another. Opportunity cost is the cost we pay in order to get something. Should I go to work today? Should I go to college? These are decisions that we make. However, what is the cost of our decisions. In economics we call this the opportunity cost. What is the opportunity cost of going to college? Senior year in high school…

Words 416 - Pages 2

Opportunity Cost Essay

How opportunity cost is a either or Matt Harmon Liberty University How opportunity cost is a either or Opportunity cost is the highest valued alternative that must be sacrificed as a result of choosing an option. (Gwartney/Stroup/Sobel/Macpherson, 2014) Opportunity cost happens in every decision making intense in life. Every choice has a cause and effect. You cannot have everything you would like because many things are scarce, such as goods (food, education, time, things man-made.) (Gwartney/Stroup/Sobel/Macpherson…

Words 457 - Pages 2

Opportunity Cost In China

Question 1 a) China: The Opportunity Cost of 1 mobile phone 30/30 = 1 apple The Opportunity cost of 1 apple 30/30 = 1 mobile phone Thailand: The opportunity cost of 1 mobile phone 20/10 = 2 apples The opportunity cost of 1 apple 10/20 = 0.5 mobile phones Comparative advantage: Comparative advantage is a situation where one country can produce a good or service with a lower opportunity cost than the other. In this particular circumstance China has comparative advantage…

Words 1903 - Pages 8

opportunity cost Essay

What are some fundamental issues that should be addressed before a crisis occurs? During an organizational crisis, what are some of the vital areas that need to be addressed? The organization when it fails to achieve its goals, demands, and unable to avoid potential risks is called organizational crisis (Milburn, Schuler, & Watman, 1983). There are some significant issues an organization needs to be addressed before a crisis occurs. The first issue is the ability to assess the risk for its own…

Words 2064 - Pages 9

Cartoon Analysis Of Scarcity And Opportunity Cost

Scarcity and opportunity cost are two economic concepts that have been discussed for many years and are still discussed today. The cartoon by Paul Fell further illustrates the concept of opportunity cost. In the cartoon, a wretched, small school is displayed with a sign attached to it that reads, “Deteriorating U.S. Schools.” The schoolhouse is has broken, wooden walls, a hole in the roof, gasses The cartoon also shows a delivery man approaching the school with a box of computers. In a speech bubble…

Words 362 - Pages 2

Review: Economics and Opportunity Cost Essays

getting the maximum benefits from its scarce resources. Equality – means that those benefits are distributed uniformly among society’s members. 2. The cost of something is what you give up to get it Because people face trade-offs, making decisions requires comparing the costs and benefits of alternative courses of action. Opportunity cost – of an item is what you give up to get that item. 3. Rational people think at the margin Rational people – people whom systematically and purposefully…

Words 1076 - Pages 5

Personal Statement: My Opportunity Cost

1-3. Opportunity cost is defined as “the value of what must be given up in order to obtain something else” (Mariotti & Glackin, 2015, p. 11). If I were to start a business, my opportunity cost would be the time I lose to dedicate to my studies (college). I spend roughly 10 to 15 hours a week per class, and I currently am enrolled in three. That is approximately 45 hours a week (7 days), which is almost equivalent to a full time job. I currently clean houses for extra income, and it requires about…

Words 202 - Pages 1

Economics: Economics and Opportunity Cost Essay

and the rule of law are the most important institutions; they are defined by contracts, legislation and enforcement. 1.2 Scarcity, Choice and Opportunity Cost • Because we live in a world of scarcity, where not everyone can have everything that they desire, this brings choice, the decision that people…

Words 1560 - Pages 7

Essay about Economics and Marginal Benefit

difficult” o The study of choices that people make when wants exceed resources • The economic problem o Opportunity costs:  What do u give up and what do you get  The bests alternative  The value that you could’ve gained by doing/purchasing the next best alternative  E.G. Olympic Power • Financial Opportunity cost: o Covering all her annual expenses o Saving money • Other opportunity costs: o A social life and a family life • She gives up: o $26000, family, social life, job security…

Words 873 - Pages 4