Module 2: Opportunity Costs

Nov 20, 2014

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Module 2: Opportunity Costs. 1. Visual 1: Opportunity Cost Defined. 2. Visual 2A: Student Opportunity Cost. 3. Visual 3: There Is No Free Lunch. 4. Visual 4A: Opportunity Cost of Car Ownership. 5. Visual 4B: Opportunity Cost of Car Ownership. 6. Visual 5: Savings. 7.

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Module 2: Opportunity Costs

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Module 2: Opportunity Costs 1
Visual 1: Opportunity Cost Defined 2
Visual 2A: Student Opportunity Cost 3
Visual 3: There Is No Free Lunch 4
Visual 4A: Opportunity Cost of Car Ownership 5
Visual 4B: Opportunity Cost of Car Ownership 6
Visual 5: Savings 7
Visual 6: Delayed Savings 8

Concept of Opportunity Cost

Opportunity cost of any choice What we forego when we make that choice Most accurate and complete concept of cost Direct money cost of a choice may only be a part of opportunity cost of that choice Opportunity cost of a choice includes both explicit costs and implicit costs

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Farm Management

Farm Management. Chapter 13 Cash Flow Budgeting. Figure 13-1 Illustration of cash flows. Common Types of Cash Flows. Sunk costs – costs that have accrued in the past Opportunity costs – costs of lost options Side effects Positive side effects – benefits to other projects

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The Principle of Opportunity Cost

The Principle of Opportunity Cost. No matter what we do, there are always tradeoffs. Scarcity -- limited resources -- is the reason. The opportunity cost of something is what you sacrifice to get it. Opportunity Costs are Choices ???. How should I spend my money ?

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Financial Reporting Module

EMBA 512 Assessing Business Opportunities. Financial Reporting Module. Objective of this Module. Assist you in becoming more sophisticated in your understanding and use of financial statements what’s the link to opportunity assessment?

180 views • 0 slides

Chapter 1 What is Economics?

Chapter 1 What is Economics?. Section 2 Trade-Offs and Opportunity Costs. Trade-Offs and Opportunity Costs. Isn’t this the meaning and s cope of economics???. Trade-Offs and Opportunity Costs. Opportunity Cost. Because resources are scarce, people can’t have everything they want.

405 views • 5 slides

Cost Theory and Estimation

Department of Business Administration. FALL 20 10 - 11. Cost Theory and Estimation. by Ass oc . Prof. Sami Fethi. The Nature of Costs. Explicit Costs Accounting Costs Economic Costs Implicit Costs Alternative or Opportunity Costs Relevant Costs Incremental Costs

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Opportunity Costs and Trade-offs

Opportunity Costs and Trade-offs. Mr. Miller. Opportunity Cost. In every decision you make, there is an economic cost associated with that decision. These costs are known as OPPORTUNITY COSTS and TRADE-OFFS…

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The Costs of Production

Chapter 8. The Costs of Production. Chapter Objectives. Explicit and implicit costs Law of diminishing returns Fixed and variable costs Total, average, and marginal costs The firm’s size in the long run. 8- 2. Economic Costs. Equal to opportunity costs Explicit + implicit costs

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MODULE 6

MODULE 6. CONSTRUCTION ACCOUNTING. INTRODUCTION TO COST. WHAT ARE COSTS?. For economists , costs are the way we measure the amount of resources used to produce goods and services. These costs can be measured in units of money ($), physical

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Chapter 8

Chapter 8. The Meaning of Costs. Opportunity costs Measuring a firm’s opportunity costs factors not owned by the firm: explicit costs factors already owned by the firm: implicit costs irrelevance of historic costs and replacement costs. Production in the Short run. Production functions

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Credit Appraisal and Project Finance Module No 4 & 5 By Mr. Navneet Saxena All The Best From

Credit Appraisal and Project Finance Module No 4 & 5 By Mr. Navneet Saxena All The Best From. Characteristics of Project Finance. Project costs include: Direct costs (including investment costs and operating costs) associated with design and implementation and monitoring and evaluation; and

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ECON

Micro. ECON. McEachern 2008-2009. 7. CHAPTER. Production and Cost in the Firm. Designed by Amy McGuire, B-books, Ltd. Cost and Profit. Producers: Maximize profit Opportunity cost All resources have an opportunity cost Explicit costs Payments for resources Implicit costs

525 views • 34 slides

Chapter 5

Chapter 5. COSTS AND PRODUCTIVITY. 1. Opportunity Costs. The correct measure of the costs of any action is what has been given up by taking that action instead of another. (Why accounting and law professors are paid more)

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Attributing Monetary Values to Volunteer Contributions

Attributing Monetary Values to Volunteer Contributions. Jack Quarter Laurie Mook October 18, 2004. Two Primary Methods. Opportunity costs Replacement costs. SOCIAL ACCOUNTING FOR NON-PROFITS. Opportunity Costs. Looks at value from the perspective of the volunteer

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The Costs of Production

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The Costs of Production

12. The Costs of Production. What are Costs?. Total revenue Amount a firm receives for the sale of its output Total cost Market value of the inputs a firm uses in production Profit Total revenue minus total cost. What are Costs?. Costs as opportunity costs

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COST ANALYSIS

Chapter 6 slide 1. COST ANALYSIS. General Principles: - Only Differential Costs Matter. Ignore Costs that are fixed across Options. - Opportunity Costs Should Not be Ignored. Starting a Business. Examples. Revenues $200 K Expenses -$110 K. MBA Degree

220 views • 6 slides

The Nature of Costs

The Nature of Costs. Explicit Costs Accounting Costs Economic Costs Implicit Costs Alternative or Opportunity Costs Relevant Costs Incremental Costs Sunk Costs are Irrelevant. Short-Run Cost Functions. Total Cost = TC = f(Q) Total Fixed Cost = TFC Total Variable Cost = TVC

359 views • 16 slides

Costs of Production

Costs of Production. The Meaning of Costs. Opportunity costs meaning of opportunity cost examples Measuring a firm’s opportunity costs factors not owned by the firm: explicit costs factors already owned by the firm: implicit costs irrelevance of: historic costs replacement costs.

716 views • 57 slides

Managerial Economics in a Global Economy

Managerial Economics in a Global Economy. Chapter 7 Cost Theory and Estimation. The Nature of Costs. Explicit Costs Accounting Costs Economic Costs Implicit Costs Alternative or Opportunity Costs Relevant Costs Incremental Costs Sunk Costs are Irrelevant. Short-Run Cost Functions.

528 views • 23 slides

Quality Management “ It costs a lot to produce a bad product. ” Norman Augustine

Quality Management “ It costs a lot to produce a bad product. ” Norman Augustine. Cost of quality. Prevention costs Appraisal costs Internal failure costs External failure costs Opportunity costs. What is quality management all about?.

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Costs

Costs. Perloff Chapter 7. Economic cost. business (accounting) costs : only explicit costs (out of pocket) economic costs : explicit cost + implicit cost = opportunity cost opportunity cost value of best alternative use of the resource

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Module 2: Opportunity Costs

Module 2: Opportunity Costs

Presentation Transcript

Concept of Opportunity Cost

Farm Management

The Principle of Opportunity Cost

Financial Reporting Module

Chapter 1 What is Economics?

Cost Theory and Estimation

Opportunity Costs and Trade-offs

The Costs of Production

MODULE 6

Chapter 8

Credit Appraisal and Project Finance Module No 4 &amp; 5 By Mr. Navneet Saxena All The Best From

ECON

Chapter 5

Attributing Monetary Values to Volunteer Contributions

The Costs of Production

The Costs of Production

COST ANALYSIS

The Nature of Costs

Costs of Production

Managerial Economics in a Global Economy

Quality Management “ It costs a lot to produce a bad product. ” Norman Augustine

Costs

Credit Appraisal and Project Finance Module No 4 & 5 By Mr. Navneet Saxena All The Best From