StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

The Cost of Something - Essay Example

Cite this document
Summary
The opportunity cost of going to Good Times’ concert is the Hot Stuff’s show because the former is the first best alternative for me after looking both costs of my actions. If I value the concerts $225 and $150 respectively, I would lose $75 for choosing Good Times Band…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER92.8% of users find it useful
The Cost of Something
Read Text Preview

Extract of sample "The Cost of Something"

(First 01 October The Cost of Something is What You Give Up to Get It The opportunitycost of going to Good Times’ concert is the Hot Stuff’s show because the former is the first best alternative for me after looking both costs of my actions. If I value the concerts $225 and $150 respectively, I would lose $75 for choosing Good Times Band. However, I would gain more than the difference for thinking rationally. Consumer must be indeed rational in any way. Driving a long way to Hot Stuff will cost me fuel and energy, and how if I would just save that time and prepare for my exam after enjoying the Good Times’ performance?

I guess there’s more to gain. According to swlearning.com, decision-makers have to consider both the obvious and implicit costs of their actions. Based on Merriam-webster.com, obvious means seen, on the other hand, the word implicit signifies unexpressed idea but has the capability of being understood. Firstly, to have a better picture of it, $75 economic profit that I supposed to receive from watching the Hot Stuff’s concert is the obvious cost of my decision. On the contrary, the fuel and energy that I will save, plus the extra time I can go back to my lessons for the exam the following day are the implicit costs of a wrong decision.

So, watching the Good Times Band give me a sigh of relief, there’s no more thinking of driving a long way home and I won’t cram anymore for a last-minute scanning of notes. Anyway, decisions like this are not an easy task as always. Without examining the cost, or without understanding the concept of economics by Gregory Mankiw, I might have chosen the Hut Stuff band because I value it higher than the other one. Simply analyzed, Hut Stuff is my favorite, but they are rather both the best bands.

Consumers and decision-makers must be aware of the “seen” and “unexpressed” costs of their actions economically. What would be more than $75 gain? Or is it a gain or loss? Well, one can only tell if the unexpressed cost is disclosed. The latter has been defined as capable of being understood, although it’s hidden but it can be recognized in the point of making decisions. One must not be a genius of arithmetic, solving the costs entails the basic math equation which are addition and subtraction, together with the right estimates of value of the implied benefits.

How can I value the fuel or the fare? Well, it’s getting obvious by now. How much is the gasoline right now? Or how much is the bus fare? How about the energy I can save for not spending much of it for a long drive or trip? What is the value of getting a good examination grades? Would it exceed $75.00? Yes, it can definitely exceed that value. Even if I would just think about my examination, getting a passing score, or better, an excellent grade for studying it over again for my remaining time would compensate me higher in the long run.

What is the real value of $75? Would it benefit me like what I supposed to have when I received some good grades? Hence, it is clear that watching the Good Times’ concert is a better choice for its implicit value exceeds the economic profit of $75 if I choose to watch the Hot Stuff’s show. Secondly, let’s put the idea above to concrete examples, if supposed I have chosen the Hut Stuff band, to be my favorite, yes, I have enjoyed the breath-taking live performance; however, I encountered problem on my way home because there’s a car accident that cause a heavy traffic on the road.

Is the satisfaction of watching the concert that I have shown as economic profit of $75 can buy a grade that would satisfy the requisite for the program am taking? It cannot, the exhaustion brought by it would just weaken my memory, and can result to worse scenario – failing grade! On the other hand, if I chose to see the Good Times’ performance, since most people say they have performed the same on the past concerts, and share the same level of popularity in country, I have gained more! The concert last for few hours, I am really satisfied with the live show as if I have watched my favorite band, plus I get several hours to review my notes, read some theories, and solve some problems related to our lessons.

Would I exhaust myself then? Would I cram? I am sure I can rest early, wake up early, and get the right amount of energy that I need for the examination! I am all set! Fortunately, making up my mind for the Good Time’s band will give me more benefits – enjoyment, relaxation and more preparation for my approaching examination! To sum up, the opportunity cost of something is the value of the next best alternative in a decision. Not looking at it carefully would confuse someone who is trying to comprehend economics.

The italic word next simply means the second best alternative. Every wise decision-maker chose the first best alternative! As what I have explained above, the benefit is higher upon considering both obvious or seen, and implicit or unexpressed costs of actions, well, with the help of rational thinking and simple arithmetic application. Therefore, the opportunity cost of watching the Good Times’ concert is the Hot Stuff band because after a careful and rational examination of the obvious and implicit costs of my decisions or actions, the former is unquestionably the first best alternative to choose from!

Works CitedMankiw, Gregory. “Principles of Economics, 2e.” swlearning.com. South-Western, n.d. Web. 01 Oct. 2012Merriam-Webster.com. Merriam-Webster, Incorporated, 2012. Web. 01 Oct. 2012

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“The Cost of Something Essay Example | Topics and Well Written Essays - 500 words”, n.d.)
The Cost of Something Essay Example | Topics and Well Written Essays - 500 words. Retrieved from https://studentshare.org/macro-microeconomics/1603848-the-cost-of-something
(The Cost of Something Essay Example | Topics and Well Written Essays - 500 Words)
The Cost of Something Essay Example | Topics and Well Written Essays - 500 Words. https://studentshare.org/macro-microeconomics/1603848-the-cost-of-something.
“The Cost of Something Essay Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/macro-microeconomics/1603848-the-cost-of-something.
  • Cited: 0 times

CHECK THESE SAMPLES OF The Cost of Something

The Difference between Macro and Microeconomics

Works cited Culverhouse College of Commerce, Macro Economics Prompt 2 (The Cost of Something is What You Give Up to Get It) Anchors.... Attending the Good Times Band's concert would involve a cost of $150 for the ticket.... In this case, the opportunity cost of attending the concert is equal to the fuel cost in driving minus the extra value of “Hot Stuff” concert.... In this situation, the opportunity cost of attending the Good Times Band concert is the $75 that will be gained from not having to travel to “Hot Stuff” and the scope of studying for some more time before the examination....
3 Pages (750 words) Essay

The importance of profound leadership & organization management in these outsourcing transitioning times

In today's world of competitive nature and globalizing world, everything is available to everyone at The Cost of Something though the whole world is messed up with confusing or labyrinthine solutions.... But what is this world based on to meet up to the globalization and services its offering Its motherboard is business and business ideals complete all desires at some cost....
5 Pages (1250 words) Essay

Economics as a Collection of Analytical Tools

pportunity cost is an economical term that means The Cost of Something in terms of an opportunity foreseen and the benefits that could be obtained from that opportunity, or also understood as the most valuable foreseen alternative.... The opportunity cost of using an input to execute the policy is its value in the best alternative usage.... Simply said, the opportunity cost of spending a Friday night having fun could be the sum of money you could have made if you had spent that time in labor....
5 Pages (1250 words) Essay

The Office in United Kingdom

Economically speaking, the opportunity cost is defined as "The Cost of Something in terms of an opportunity forgone or the most valuable forgone alternative" (Opportunity Costs 1).... Business process outsourcing has become a trend channeling jobs to other countries where the cost of labor is lower like China, India, and the Philippines thereby lowering the demand for labor in the United States.... Thus, the opportunity cost of going to war can be stated as the social and economic benefit which could have been derived from the investments in socio-economic projects....
2 Pages (500 words) Movie Review

Self-Sacrifice in O.Henry's Gift of the magi and Rabindranath Tagore's The Cabuliwallah

However, The… Each of these stories was written about giving at The Cost of Something most precious (Griffiths 3-3).... Each of these stories was written about giving at The Cost of Something most precious (Griffiths 3-3).... It is the cost that seems very Gifts of Love and Caring In both of these stories the is telling us about unselfish gifts, and while there is a similarity in the motivations,they are based in totally different cultural circumstances....
2 Pages (500 words) Essay

Contribution and Functional Income Statement

This essay analyzes that a contribution income statement is one that associates costs within a specific parameter, whether a sales division of a company or one product in a multi-product line.... Its purpose is to demonstrate the relationship between variable costs and fixed costs.... hellip; This research paper examines a functional income statement that is one, which separates both product and period costs....
10 Pages (2500 words) Coursework

Four Principles of Individual Decision Making

This paper focuses on the individual decision making in economics which is usually connected to four major principles: People face tradeoffs; The Cost of Something is what you give up to get it; Rational people think at the margin, and People respond to incentives.... The second principle says that The Cost of Something is what we give up to get it.... For example, consider a person forced to give up $ 200 for purchasing a television the cost of that television would be $ 200....
1 Pages (250 words) Assignment

Discussion on the Economic Implication of Decision to Purchase a House

The Cost of Something is what you give up to get it.... When buying a house I will need to evaluate the difference between the cost of the house and the expected value or benefits from the house (Slembeck, 2007).... When buying the house I need to evaluate how the cost of the house compares to the cost of missed opportunities.... This essay gives a discussion on the economic implication of decision to purchase a house from which the author expects to gain of value and the decision will, therefore, be based on the difference between the cost incurred to obtain the house and its value… The author focuses on purchasing a house which is an economic decision that requires rationality....
7 Pages (1750 words) Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us