This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: Opportunity cost The next best use of a resource that is given up to produce something Ex. cost of E201 attendance today Nap Income Other studying Late lunch Workout Why not count tuition? Suck cost Sacrifice that occurred a past decision The past cant be changed so current decisions don’t depend on that sacrifice Opportunity cost in incremental or marginal cost If asked the opportunity cost in the next semester then the tuition becomes relevant Technology Refers to how resources are combined in production Think: recipes of which resources are combined. Ex: like baking a cake, all the ingredients to make the whole cake, butter, bowls, etc....
View Full Document
- Spring '10
- ice cream