Recall the definition of the opportunity cost first. Figure out the opportunity cost in the examples...

 

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Recall the definition of the opportunity cost first. Figure out the opportunity cost in the examples below. a) Person A had his own job that could yield $3000 per month as salary, yet now he run his own business. Now he has to pay $4000 as wage, $2000 to rent equipment, and earn $8000 as revenue b) Person B has her own firm and chose to build a new factory which costs $300,000. From that factory, she can earn $500,000. If she not to choose build it and get some new machines, she can earn $300,000. c) Person C has her own building, but decided to run her own business in her building. The rent fee of that building is $700 per month Recall the definition of the opportunity cost first. Figure out the opportunity cost in the examples below. a) Person A had his own job that could yield $3000 per month as salary, yet now he run his own business. Now he has to pay $4000 as wage, $2000 to rent equipment, and earn $8000 as revenue b) Person B has her own firm and chose to build a new factory which costs $300,000. From that factory, she can earn $500,000. If she not to choose build it and get some new machines, she can earn $300,000. c) Person C has her own building, but decided to run her own business in her building. The rent fee of that building is $700 per month

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Opportunity cost is the cost of forgoing the next best alternative when making a decision It represe... View the full answer