ECON 1011 Lecture Notes - Lecture 2: Charter Colony, Opportunity Cost, Historical Cost
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ECON 1011 Full Course Notes
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Cost or opportunity cost: value in another use. In an auction you have to bid . 01 cents higher than anyone else this is opportunity cost. Opportunity cost is used in stores among many other places. Waiting in lines makes it hard to determine opportunity cost. Opportunity cost of items can be value at action. Is something other people place on stuff. When personal value is higher than than opportunity cost you don"t sell item. Historic cost: cost to produce or acquire. Accounting cost: what the rule says-historic cost minus depreciation. Historic or accounting cost can exceed opportunity cost. A good is scarce if there is a price. Place where water is not scarce-free water in a water fountain. Cost to produce and value to the user must be greater than zero. Nothing is free always an opportunity cost. The way you are organized and what you can produce is more important than the ability to purchase goods.
