Question

State the opportunity cost in each of the following actions:
1. A shirt was purchased for #500 instead of a pair of shoes
2. Onions were planted on a farm realizing #20,000 that could have realized #25,000

Answer 1

Explanation:

Opportunity Cost

Everything has an opportunity cost attached to it. Let’s say you want to go out and buy a brand new pair of shoes for $100. I’m not saying this is good or bad, but I am telling you that the $100 you spent on shoes is costing you more than just money, it’s costing you the O-P-P-O-R-T-U-N-I-T-Y of doing something else with that money.

What if instead of buying that pair of shoes, you instead decide to pay off debt with it? Therefore, the opportunity cost of purchasing those shoes is costing you the opportunity of paying off your debt quicker.

This seems pretty obvious when we talk about small numbers like this, but what about when we add a few zeros to the mix and then tack on time?

Answer 2

Answer:

both statements are False statements