Practise opportunity-cost questions by identifying the next best alternative and applying it to consumer, firm or government choices.
A firm has decided to purchase a new delivery vehicle.
Explain one possible opportunity cost for the firm of this decision.
AO2 3 marks
Award 1 mark for identifying a relevant opportunity cost
Award 1 mark for developing the opportunity cost
Award 1 mark for the response being in context
- One opportunity cost is Casper may not be able to buy a new phone (1) because he does not have enough money for both (1) so he has to sacrifice the next best alternative when using the money he has to buy the television (1)
Accept any other appropriate response
(3)
Question
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With reference to the data above and your knowledge of economics, analyse two possible factors influencing Anastasia's decision to open a second club.
Indicative content