Opportunity Cost

Need help with your homework? Look no further! Our subject experts are ready to effortlessly handle your assignments, so you can finally say goodbye to stress and hello to top grades.

Click or drag files to this area to upload. You can upload up to 3 files.
Get a response in under 15 min

Opportunity cost deals with providing an alternative in the PPF. If we continue with the example of colas and pizzas, the number of colas which must be scratched from production to increase pizzas is the opportunity cost of the pizzas. Alternatively to increase the total amount of colas you need to do away with production of a number of pizzas. This calculation is what encapsulates the opportunity cost. Technological resources coupled with modern tools can make this process smoother.

 In the figure given the opportunity cost can be easily determined. It is noticed that to increase production of pizza by 1 million, 3 million cans of cola need to be stopped. Hence in conclusion one pizza equates to 3 cans of coke. The data could be reversed and the calculation of opportunity cost could be calculated from Points C to D, instead of D to C. Thus to increase cola cans by 3 million, 1 million pizzas need to be cut down. Thus one can of cola is equivalent to 1/3rd of a pizza in whole.

Opportunity cost is a ratio

It can be concluded that opportunity cost is a ratio because the decrease in quantity of one commodity divided by increase of quantity of another is the opportunity cost. The calculations from points C to D or from D to C reveal that opportunity cost is 3 colas for one pizza and 1/3rd pizza for a cola. Therefore when we were comparing the cola and the pizza productions it was seen that opportunity cost of manufacturing1 can of cola was inversely equal to production of one pizza. It can be observed that opportunity cost is nothing but a ratio which can be simply obtained by a few calculations.

Increasing opportunity cost

Since it is observed that the opportunity cost of pizza is more than that of cola, it can be seen that in Fig 2.1 when the production of the two commodities, namely, pizza and cola are increased the outward bow shaped curve is different. When production of cola is increased the rate of fall of pizza is less cause the opportunity cost of cola compared to pizza is less or 1/3rd. Similarly when pizza production is increased the rate at which cola production reduces shows a steep curve as one pizza equates to 3 cans of cola. This curve can be studied in points A & B and points E & F in the figure.

It is not difficult to understand that someone who has worked for years in Dominos will have a vast knowledge in pizza production. Placing such an individual in Pepsi Co will not increase production of cola but of pizza. Therefore the greater quantity of goods one tries to produce of both pizza and cola the greater is the fall in production of additional resources which are used in the production of the goods like pizza and coke. This is directly responsible for the rise in the opportunity cost of that unit of production.

We have observed so far that production is efficient even though it is limited by different circumstances such as the production possibilities frontier. A different range of quantities can also be produced by the PPF. The question however remains how do we choose among the different PPF options as well as determine which one is the best?


Links of Previous Main Topic:-

Links of Next Macroeconomics Topics:-

Homework Blues?

Get expert help with homework for all subjects.

  • NPlagiarism-free work
  • NHonest Pricing
  • NMoney-back guarantee

Latest Reviews

Solved Sample Works

Accounting Homework

Corporate Accounting Sample

Biology Homework

Genetics Assignment Sample

Essay Writing Help

Business Plan Sample

Homework Help FAQs

Our Answers to Your Questions

How do I submit my homework?

Getting homework help is very simple with us. Students can either send us the homework via email or they can upload it to our online form here. For a quicker response, You can also chat with us at WhatsApp and submit homework directly. You are sure to get a response from our side within 10 minutes.

How much will my homework cost?

The cost of paying someone to do your homework varies depending on the service and the type of assignment. We have listed our standard pricing plans for popularly used writing services. For other kind of assignments, You can get a free instant quote from us using our online form.

We also accept partial payment to start working on your assignment help. You can pay the remaining amount when your task gets completed. No pressure of up-front payment. No hidden order costs.

Can I receive help with my homework anytime?

Yes, you can receive help with your homework anytime with us. Our online homework help services are available 24/7, allowing you to receive assistance with your homework anytime, anywhere.

For urgent homework requests, reach out to us through our LiveChat or WhatsApp channels and one of our friendly support agents will assist you in finding the right expert for your online homework help request immediately. With our services, you can rely on 24/7 availability and meeting deadlines.

Are online homework websites budget-friendly for students like me?

Yes, Our Online Homework Help websites are an affordable solution for you as a student. Compared to traditional tutoring services, MyHomeworkHelp prices their homework help services honestly and within the budget of college students. This makes it easier for you to receive assistance with your homework without breaking the bank.

What is your plagiarism-free policy?

At myhomeworkhelp, we take plagiarism very seriously and ensure that all solutions provided by our tutors are original and authentic. Our tutors are trained to provide custom-made solutions, tailored specifically to meet the requirements of each student. We do not provide pre-written papers. All our homeswork solutions are made from scratch, guaranteeing 100% orignal homework answers.

Additionally, we have strict plagiarism-detection tools in place to check all submissions for authenticity.

Is using an Online Homework Help Service cheating?

Using online homework help services is not equivalent to cheating. Our services are intended to support students with their homework and provide them with the resources they need to succeed academically. With the help of our online homework help services, students can receive immediate assistance with their homework from any location, at any time.

At myhomeworkhelp, we are committed to promoting academic integrity. Our tutors provide solutions that serve as guides for drafting your own work. It is not acceptable to submit someone else's work as your own, as this constitutes academic plagiarism.

Can I chat with my tutor?

Using our secure chat board, you can now chat directly with your assigned tutor. The chats are encrypted both ways to secure your privacy. This makes your contact with the tutor directly & confidentially, so you can better explain any requirements or changes if needed or just need updates.

You can't contact the experts outside of chat board platform. Sharing any personal information, including but not limited to contact information, goes against our Terms and Conditions and therefore may result in permanently blocking you from the platform. We take any personal data very seriously and we do it for the safety of our users.

Know more about chat board here.

What is your money-back guarantee policy?

It’s worth noting that our online homework help service rarely leads to disappointment among students. Our expert tutors, along with our support and quality assurance team, are dedicated to providing the best possible experience for our customers. However, if for any reason a student is unsatisfied with their homework help solution, we offer unlimited revisions until they are fully satisfied.

In the rare event that a student remains unsatisfied even after revisions, we offer a money-back guarantee. We want all of our students to feel confident and secure when they turn to us for assistance with their homework, and this guarantee is just one way that we demonstrate our commitment to providing the best possible service. If you have any concerns about our services or the quality of the work you receive, please contact us for support.

What is the expertise of the tutor assigned to do my homework?

At myhomeworkhelp, we take pride in our team of qualified and experienced tutors. All of our tutors undergo a rigorous selection process and are required to have a minimum of a master's degree in their respective fields. Additionally, they must pass a series of tests to demonstrate their proficiency and ability to deliver quality work. We believe in transparency and providing our clients with the best possible service. You can be confident in the expertise of the tutor assigned to do your homework.

What about privacy & confidentiality?

Using My Homework Help is absolutely safe. We care about your security, therefore we encrypt all personal data to make every user feel safe while using our services and we don’t share any personal information with any third parties without your permission. Your credit card information is not stored anywhere at My Homework Help, and use of PayPal relies on their secure payment networks. Your identity, payment and homework are in safe hands. You can always be certain of getting professional help and remaining anonymous, while using My Homework Help.