Assignment experts state that an opportunity cost is the one associated with going for a certain way of doing something over the other, and is measured by evaluating the benefits forgone for not choosing the next-best alternative.
Hence, assignment help experts state that it is evident that estimation of opportunity cost is dependent on the identification of the alternative that is next best to the chosen decision. For example, if you are thinking of opportunity costs associated with pursuing a degree in MBA, suppose that you are an MBA aspirant who has been associated and working in business since 5 years. Thus, what would you be giving up if you ever chose to go for an MBA degree? In such a case, it would be the possible income you could have learnt from your job. The opportunity cost could be big or small depending on your remuneration. This would imply that if you decided to pursue an MBA, the total cost associated with it would be the tuition fee of institute plus the opportunity cost.
For those who need economics assignment help, the above stated examples illustrate that the opportunity costs for inputs, goods as well as services are often depicted by market prices. For example, the opportunity costs associated with you pursuing MBA would be your forgone wage. Whereas in the other case, the market price of the land will be its value in the market. Also, University assignment help experts say that in case the land was not owned by the city, it would have to be bought by paying an amount to the market. As per economics coursework, ownership does not impact the opportunity cost.
In layman terms, profit is calculated by subtracting cost incurred from revenue earned. However, there exist two definition of profit in the real world. The definition of profits that we discussed above is relevant for accounting profit. The figures of profit which are reported by firms in journals and newspapers are often accounting profits. The accountant is responsible for keeping a track on revenues and expenses. This kind of information is utilized for external as well as internal purposes i.e. for the government and also for managers and shareholders. As far as managerial decision making is concerned, the accounting profit is not sufficient in order to explain profitability. This is where economic profit comes into play. According to macroeconomics assignment help experts, economic profit is calculated as the revenues earned minus all economic costs comprising of explicit and implicit costs incurred. These costs are inclusive of opportunity costs. Thus, economic profits take into account the cost associated with both managerial labor as well as capital.
The article clearly defines opportunity costs and economic profits for those seeking help with assignment on economics. Opportunity cost is the forgone amount that could be earned on choosing the next best alternative as a solution to a business problem. The opportunity cost in several cases is reflective of the market price and ownership has no direct impact on it. Economic profits are calculated by taking into account explicit as well as implicit costs, including opportunity costs.