The mentioned graphs represent production possibilities curve with different variations. Scarcity of resources is a driving force for every graph (and economics in real life) and it means that only so many units of two (in our example) types of products can be produced. Opportunity cost means sacrificing of production of so many units of one product by producing so many units of desired product. Choice means what opportunity cost you pay by making your production decision. Say you give up producing 2 tons of wheat by choosing to produce 8 more cars. 2 tons of wheat is the opportunity cost.
I also have to make some choices managing my personal time and resources. I would like to make some renovations in my house and I also need a new car. My income allows me to do only one project at a time. So my choice is to buy a new car. There is also a time consideration for this decision. Renovation requires more supervision and I am very busy now with my courses while research is required for both projects. So renovation of the house is my opportunity cost for a new car.
My opportunity cost for returning to school has two components: time and money. I cut off my entertaining time such as reading, watching TV, socializing. I also have to pay for three courses per semester which is equivalent vacation in Mexico. These two are my opportunity cost. Instead I will gain better professional standing and salary increases in future.
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