Writing Question


Answer the 2 questions below

1. that is a great definition of what an opportunity cost is. Opportunity costs can be very hard to figure out, and if the deal is big enough, it could put the company under. If company A decides to buy 1 years’ worth of items because they think it is a smart, and then it turns out that longer is no longer needed, then they will be in trouble because they have to scrap that item. The more experienced you are at making these decisions, the better you will be at them. It really looks like you know what you are talking about and did a great job with this post. Do you have any real-world experience with opportunity costs?

2.An opportunity cost is when you have to make a decision on what you want to spend on. Opportunity costs can affect any sort of business and should be taken seriously. The consideration of opportunity costs may be relevant to a firm because they have to make sure that they are making the right choice. If your firm chooses one option, and it turns out being the worse option, then you could be in trouble. Another firm could make the other choice on the same topic that would end up saving them money, and then they would have that competitive advantage making them be able to make decisions that could end up hurting your firm. An example of an opportunity cost is, a company or firm could be selling wood for houses. The company does not know at the time how much demand there will be for that certain item. The company decides to buy an excess amount at a cheaper price because they think that item will be in higher demand. They could of just bought a months supply, but instead they bough a year supply. 3 months later, it turns out that item is not needed. That company decided the wrong option, and it will cost them economically.

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