What is the opportunity cost in this scenario Harry?
Answer Expert Verified. The opportunity cost in this scenario is the three lost opportunities Harry experiences by deciding to go to his parents house. The term opportunity cost refers to the loss of potential gain from other alternatives when one alternative is chosen.
What does higher opportunity cost mean?
Lesson 5: The law of increasing opportunity cost: As you increase the production of one good, the opportunity cost to produce the additional good will increase. First, remember that opportunity cost is the value of the next-best alternative when a decision is made; it’s what is given up.
What is the relationship of opportunity cost in decision making?
“Opportunity cost is the cost of a foregone alternative. If you chose one alternative over another, then the cost of choosing that alternative is an opportunity cost. Opportunity cost is the benefits you lose by choosing one alternative over another one.”
Is a high opportunity cost good or bad?
Benefits. Incurring opportunity costs is not inherently bad, as they do not detract from business decisions; instead, opportunity costs often enhance the decision-making process. Weighing opportunity costs allows the business to make the best possible decision.
What does a lower opportunity cost mean?
A high opportunity cost is the amount of assets you will not have gained if you went a certain direction with your business or your investments. If your opportunity cost is low, that means you didn’t miss out on very much.
What is the downside to specialization?
The Cons of Job Specialization
- Potential for Boredom. The majority of American workers aren’t finding fulfillment in their jobs.
- Risk of Obsolescence. The world changes and certain skills and occupations come and go in terms of utility and value.
- Limited Skillset.
What is a disadvantage of being a specialist skilled worker?
Greater cost of training workers. Quality may suffer if workers become bored by the lack of variety in their job. More expensive workers. Boredom for the worker as they do the same job everyday.
What is the work specialization?
Work Specialization, also known as division of labor, refers to the degree to which tasks necessary to achieve organizational objectives is divided into various jobs. Work specialization allow managers to break complex tasks into smaller, more precise tasks that individual employees can complete.
What is work specialization example?
The division of labor into several small tasks ensures employees to complete their work in time. In KFC for example, work specialization is implemented in such a way that the cashier takes the order the chef prepares the food as the branch manager supervises the whole process.