Opportunity cost is the most profitable item among abandoned opportunities. For example, if a farmer can only choose between raising pigs, chickens and cattle, he can get 90 thousand yuan for raising pigs, 70 thousand yuan for raising chickens and 80 thousand yuan for raising ducks, then the opportunity cost of raising pigs is 80 thousand yuan, the opportunity cost of raising chickens is 90 thousand yuan, and the opportunity cost of raising ducks is also 90 thousand yuan.
Extended data:
1. Opportunity cost refers to the opportunity for an enterprise to give up another business activity in order to engage in one business activity, or to give up another income when using a certain resource to obtain a certain income. The income or income of another business activity is the opportunity cost of the business activity.
In life, some opportunity costs can be measured by money. For example, if farmers get more land, they can't choose to raise chickens if they choose to raise pigs. The opportunity cost of raising pigs is the benefit of giving up raising chickens. However, some opportunity costs can't be measured by money, for example, choosing between reading and studying in the library or enjoying the happiness brought by TV series.
2. Characteristics of opportunity cost
(1) Opportunity is optional.
Opportunity cost refers to the opportunities that decision makers can choose. If it is not a project that decision makers can choose, it is not an opportunity for decision makers. For example, if a farmer can only raise pigs and chickens, then raising cattle will not be an opportunity for a farmer.
(2) The opportunity cost is profitable.
The project with the highest income among abandoned opportunities is opportunity cost, that is, opportunity cost is not the sum of the income of abandoned projects. For example, a farmer can only choose between raising pigs, chickens and cows, if the income relationship between them is cattle >; Raising pigs > raising chickens, the opportunity cost of raising pigs and raising chickens is raising cattle, and the opportunity cost of raising cattle is only raising pigs.
(3) Opportunity cost and scarcity of resources
Choosing one thing in a scarce world means giving up other things. The opportunity cost of choice is the value of the abandoned goods or services. Opportunity cost refers to the maximum income that can be obtained by using a certain resource to produce a certain product under the condition of limited resources.
References:
Opportunity cost _ Baidu Encyclopedia