Microeconomic Tutorial 01 by Himal muthunayake

Microeconomic Tutorial 01 by Himal muthunayake https://padlet.com/himalmuthunayakesh/avsrc1d8ss8v1gn0 Answer the questions en-us 2021-06-14 08:08:00 UTC 2021-06-17 11:07:55 UTC hello@padlet.com himalmuthunayakesh https://padlet.com/himalmuthunayakesh/avsrc1d8ss8v1gn0/wish/1612011183 Opportunity cost is the value of something when a particular course of action is chosen. Simply, the opportunity cost is what you must forgo in order to get something. The benefit or value that was given up can refer to decisions in your personal life, in a company, in the economy, in the environment, or on a governmental level.

For as an example, let’s assume that you have Rs. 100.

By using this Rs. 100 you have following alternative uses; (Assume all these alternatives are worth Rs. 100)

I. Buying a book

II. Buying a mobile prepaid card

III. Buying a lottery

IV. Buying a latest movie CD

V. Buying a chocolate

If we rank these alternatives base on your highest priority. The first priority which you given is your choice. It means that option is what you plan to do from Rs. 100 and the second best option you have will be your opportunity cost of selected option.

Let see that your first priority is to buy a chocolate and second priority is to buy a book and third priority is to buy a mobile prepaid card so on..

Your selected first option to buy a chocolate is your choice and the alternative cost of buying a chocolate is your next best alternative “buying a book”.

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