opportunity cost

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opportunity cost

the opportunities foregone in undertaking one activity measured in terms of the other possibilities that might have been pursued using the same expenditure of resources. While opportunity cost is mainly a concept in economics, it also applies more generally to human existence. For example, given the finitude of time in the human life-span and the impossibility of doing many activities more than one at a time or other than in one-to-one interactions, opportunity costs are involved in many human activities, not only those in which economic resources are involved.
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The Leontief technology implies that, for each product, the opportunity cost of understocklng resources each period is a linear combination of the opportunity costs of the resources it consumes.
The opportunity cost of a vacant assisted living unit will typically be about $24,000 per year (see "Opportunity cost of vacant units," right).
There must be a meaningful assessment of the opportunity costs of a large, simple, but expensive WTST.
If opportunity costs are not included as costs, then some proposals may appear to be better just because they use existing government resources.
Table 2 provides the opportunity costs of the E-V approximation for the data sets.
More Attend college at ages 18-21 than 48-51 because the opportunity cost is lower.
Teenagers estimate their own opportunity costs by using the opportunity cost set of older cohorts.
In the first quarter, the velocity of M2 (defined as the ratio of nominal GDP to M2) increased a little more than might have been anticipated from its recent relationship to the opportunity cost of holding M2 -- the interest earnings forgone by owning M2 assets rather than market instruments such as Treasury bills.
You cannot explore the best use of your resources, the so-called opportunity costs of each dollar, unless you have that dialogue.
A third reason to suspect the use of the wage rate as a valid measure of the opportunity cost of time is that the most interesting individuals for an empirical study may not earn an observable wage, and these same individuals may have opportunity costs of time considerably higher than some market wage.
Two other costs to consider are opportunity costs and sunk costs.
Consumers do not spontaneously consider the opportunity costs of a purchase - or other ways the purchase money could be spent or saved - but can easily be prompted to do so according to researchers at the Yale School of Management, MIT, and Arizona State University.
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