Hkcee 2010 Econ Paper 2 Q2 [exclusive] -

: Opportunity cost is not just about the money paid; it includes the value of the time and the next best alternative. Even if two people pay the same price for a ticket, their opportunity costs differ if their next best way to spend that time has different values.

Total Opportunity Cost=Explicit Monetary Cost+Implicit Value of Forgone OptionTotal Opportunity Cost equals Explicit Monetary Cost plus Implicit Value of Forgone Option Common Examination Traps to Avoid

is incorrect as opportunity cost exists in any system with scarce resources, including planned economies. hkcee 2010 econ paper 2 q2

Any good or service where the quantity demanded exceeds the quantity available at zero price. Producing or consuming it incurs an opportunity cost.

. If you own a shop and use it for your own business, the highest-valued alternative is typically the market rent : Opportunity cost is not just about the

: The universal condition where human desires exceed the limited resources available to satisfy them.

Identify THREE rewards that can be gained by the factors of production used by the fashion chain. Any good or service where the quantity demanded

Identify that the value of the best alternative (e.g., property) has increased.