by 
1krystian
ANSWERS: 4
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Opportunity cost does not have to be numerical, so it really depends on the situation. It is effectively the benefit (be it quantitative or qualitative) of the next best alternative. For example, say you have two books that you can read, but only one hour. If you decide to read book 1 for an hour, the opportunity cost is not being able to read book 2. On a PPF curve (which is likely what you're looking at now), the opportunity cost is the absolute value of the slope of the curve.
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There is none, but I'm sure economics can create one. Still yet, if it is good, everyone will jump on that gravy train and neutralize it.
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There certainly is a mathematical formula: Opportunity Cost = What you give up ---------------- What you gained I.E. You have to give up 10 apples to get 4 oranges, OPC = 10/4 = 2.5 In other words you had to give up 2.5 times what you got in return. Hope that helps.
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no formulae exist of which i'm aware... in part, it depends on the relative value of what you've gotten, the relative value of what you're getting, changes over time to each, and, hopefully, you can find some objective method for calculating gains, costs, and opportunity costs. for example, the cost of college for 4 years is, say, $80,000 in actual tuition, $30,000 in room and board. so, cost is $110,000. you're likely to make $15,000 a year more per year than someone without college. multiply $15,000 by 40 years and that's $600,000. opportunity cost: instead of spending all my time trying to calculate silly economics formulae, i go to work instead of college. the opportunity cost, then, is the salary that i could've made working at mcdonalds, earning, over 4 years, $60,000. we'd all conclude that the cost of $110k plus the added wages of $600k are far greater than the $60k opportunity cost.
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