Criticism of opportunity cost, Microeconomics

Criticism of Opportunity Cost

The concept of opportunity cost is criticised on many grounds. Critics observe that it is only a notional cost. The earnings foregone by one person which might have been earned by another may not be invested by the latter. Further, employment market may not be having steady potential to absorb skilled labour at all points of time. The salary and service conditions of those who do skilled labour or take up professional employment need not be comparable.

Hence, assumptions regarding opportunity cost will be valid and meaningful only when there is a demand for skilled labour, waiting time for employment is zero, the income earned is not consumed by the other person (either in part or full) but invested profitably, service conditions are comparable, and so on.

 

Posted Date: 12/17/2012 5:12:28 AM | Location : United States







Related Discussions:- Criticism of opportunity cost, Assignment Help, Ask Question on Criticism of opportunity cost, Get Answer, Expert's Help, Criticism of opportunity cost Discussions

Write discussion on Criticism of opportunity cost
Your posts are moderated
Related Questions
concept of supply

Relatiön between TC ,TFC and TVC

How would you convert from moles of iron(III) oxide to moles of carbon monoxide?

Physical Capital: A tangible tool, machine, building or other productive asset that is used to produce other goods or services. Pollution: Many economic activities involve disch

Price | Quantity demanded _________________________ 0 250 50 200 100 150 150 100 200 50 250 0 A) Calculate Lorie''s profit-maximizing output, price, and economic profit. B) Do yo

1. Suppose that a monopolistically competitive firm must build a production facility in order to produce a product.  The fixed cost of this facility is FC = $24.  Also, the firm ha


Ask question #Minimum sources of monopoly100 words accepted#

Answer in True or Flees 1.  "Revealed preference methods for valuing environmental services and goods (for example hedonic price method, travel cost model, etc.) can reveal non-

please can you explainn what "down 0.1 percentage point on the quarter means"?