Opportunity cost occurs due to the producer’s need for
Answer 1
Opportunity cost occurs due to the need for a producer to allocate resources.
More explanation:
Opportunity cost summary: The opportunity cost of an alternative is the sum of all the potential gains of all the other alternatives that can be obtained. Simply put, it is the sacrifice made when an alternative is chosen and resources allocated to it. When deciding which alternative to choose, an economic agent compares the opportunity costs of all the alternatives and selects the one with the lowest opportunity cost.
Producer decision using opportunity cost: A producer must allocate resources to produce goods and services. A producer decides what to produce and how many quantum to produce. In it, a producer allocates resources in a given alternative among many alternatives. A producer makes this decision based on opportunity costs and chooses the one with the lowest opportunity cost. By making the decision in this way, a producer maximizes his profits and ensures that no profitable opportunity is missed. A producer always faces scarcity of resources and therefore making a correct economic decision based on opportunity cost analysis ensures maximum profits.
Learn more:
1. Learn about the demand and supply of goods
2. Learn about the law of supply and demand
3. Learn about the supply and demand diagram
Response details:
Series: Graduate School
Subject: Economy
Chapter: Supply
Keywords: opportunity cost, occurs, because, producer need, to, allocate, resources, spend resources, allocate resources, resources, protect resources, limit resources, producers, supply, producer decision , resource allocation, allocation
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answer 2
Protect resources Explanation:
answer 3
The correct answer is to spend resources. An opportunity cost involves a person/company making a decision based on available information. However, they decide to use these features, which means they will drop the next best alternative. In this case, producers must choose how to spend their resources efficiently to maximize their profit. This is why companies decide which products they will develop, how much product they will produce, and how many employees they will have to work on a specific task.
answer 4
allocate resources. Explanation: The scarcity of resources forces producers to make choices about the use of the few resources available. Like other people, producers will want to do many things but will be constrained by lack of resources. Time and money are examples of scarce resources. They must distribute the available resources among the different needs and desires. Opportunity cost is measured by calculating the value of the next best alternative.
Answer 5
C On Edge January 2021 Explanation: