EACH QUESTION HAS THREE to Four SOLUTIONS
Week Two- DQ-1
Opportunity cost is a very important economic notion. It is the cost of your next best opportunity. In economics, this cost is a part of profit calculations. But in accounting it’s not. Why do we use this notion in economics? How does it come into play in economic decision making? Please explain and elaborate.
Week Two- DQ-2
Choose an organization not previously selected that has a high fixed cost and low variable cost balance to run its operations. Discuss the balance of fixed and variable costs for the organization. How has the Internet changed this balance for organizations?
Week Two- DQ-3
Explain the decision-making process when MR is greater than MC and when MC is greater than MR. Why does a manager want to operate at a capacity where MR=MC?
As a student, what opportunity costs do you confront by enrolling in University of Phoenix’s MBA program? Does your organization or an organization with which you are familiar consider opportunity costs when evaluating strategic opportunities? For your organization, are opportunity costs fixed costs, variable costs, both, or neither.
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