Consumers and Markets & Business Economics – Management Assignment Help

Assignment Task

Opportunity Cost 
• Every decision has an opportunity cost – the  cost in foregone opportunities.
• Opportunity cost: the value of the highest? valued alternative that must be forgone when  a choice is made. It is the evaluation of a  trade?off. 
• Marginal benefits and costs: the benefits and  opportunity costs associated with one  additional unit of the good

A Guide to Economic Reasoning 
An example of the economic decision rule: 
• Steve Levitt’s bestseller, Freakonomics, contains many examples of “thinking like an economist”
• Levitt uses economic reasoning to explain why  people become drug dealers 
• The potential financial benefit of selling drugs is  much higher than the cost of giving up a minimum  wage job

• The opportunity cost of college includes:
• Items you could have purchased with the money spent for tuition and books
• Loss of the income from a full-time job
1. Individual decisions
Examples of opportunity cost:
• The opportunity cost of money spent on the war on terrorism is less spending on healthcare or education