Cost-effective definition is - producing good results without costing a lot of money. How to use cost-effective in a sentence.
C(q b) is the cost of producing quantity q b of good b separately; C(q a +q b) is the cost of producing quantities q a and qb together; S is the percentage cost saving when the goods are produced together. Therefore, S would be greater than 0 when economies of scope exist. Example of Economies of Scope. For example, a restaurant produces both ...
Second, use of time or resources in the production of a good has an opportunity cost, the other goods that could be produced instead, or other ways in which the time could be spent. These opportunity costs arise because the same resources, whether time or production inputs, can only be used once.
Actual Costs and Opportunity Costs: Actual costs refer to the costs which a firm incurs for acquiring inputs or producing a good and service such as the cost of raw materials, wages, rent, interest, etc. The total money expenses recorded in the books of accounts are the actual costs.
(ii) PPF is concave ⇒ increasing opportunity cost. The amount of y 2 that an economy has to sacrifice to get an additional unit of y 1 increases as y 1 increases. Example: If demand for oil increases, the amount of other goods to sacrifice to get an additional barrel of oil increases.
B) constant opportunity costs as more and more of one good is produced. C) increasing opportunity costs as more and more of one good is produced. D) decreasing opportunity costs as more and more of one good is produced. Answer: C Diff: 2 Page Ref: 44/44 Topic: Opportunity Cost *: Recurring
So that third rabbit, my opportunity cost is 60 berries. I'm getting really good at catching rabbits, so clearly, you see here, that for each incremental rabbit I get, my opportunity cost is decreasing, all the way to that fifth rabbit, maybe my opportunity cost is 20 berries. To catch that next extra rabbit, I'm giving up those 20 berries.