Tuesday 20 October 2009



Opportunity cost…

Definition: The cost of the next best alternative, which is forgone
when the choice is made
Examples:
i) Since a Canadian worker can make either two cars a year or 30 bushels of wheat, the opportunity cost of a car is 15 bushels of wheat

ii) Hawaii is the largest producer of coffee in the U.S. However the opportunity cost of growing more coffee is too high (tourism, vacation resorts, environmental issues) to grow more coffee in Hawaii


4 comments:

  1. Change the time settings.

    This is a beginning...

    ReplyDelete
  2. Daily???????????????????????????

    Today is THURSDAY!

    ReplyDelete
  3. This comment has been removed by the author.

    ReplyDelete
  4. You are not doing your daily blog. I am arranging a change of teacher for you.

    ReplyDelete