Economics

Assignment ane:

Question 1:

What is the opportunity approach of doing an MBA or MPA at the University of Ballarat? List the woos involved. Say you define to attempt to do this political economy unit without consulting the recommended textbook. What is the risk of doing so?

Answer 1:

Scarcity of resources is one of the more rudimentary concepts of economics. Scarcity necessitates trade-offs, and trade-offs burden in an Opportunity embody. While the cost a good or service a great deal is opinion of in monetary terms, the opportunity cost of a finality is based on what must be given up “the next best alternative” as a result of the finding. Any closing that involves a choice between dickens or more options has an opportunity cost.

Opportunity cost contrasts to be cost in that accounting costs do non make out forgone opportunities. Consider my case of an MPA student: I net profit $24,000 per year in tuition and fees at a Ballarat university. For a two-year MPA program, the cost of tuition and fees would be $48,000. This is the monetary cost of the education. However, when making the decision to go back to school, one should consider the opportunity cost, which includes the income that i would have earned if the alternative decision of remaining in my job had been made.



If i had been earning $50,000 per year, $100,000 in net profit would be foregone as a result of the decision to return to university. Adding this amount to the educational expenses results in a cost of $148,000 for the degree.
Opportunity cost is useful when evaluating the cost and benefit of choices. It often is expressed in non-monetary terms. For example, if one has time for only one elective get over, taking a course in economics might have the opportunity cost of a course in management. By expressing the cost of one option in terms of the foregone benefits of another, the marginal costs and marginal benefits of the options evict be compared.

Opportunity costs have to be taken into account in cases...If you want to get a complete essay, order it on our website: Orderessay



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