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人教版选修（语言应用类） 初级财经英语《Topic 2 Investing Unit Six Making investment decisions content》优秀教学课件
Tony had a hard time deciding whether to have the Big Burger, the chocolate cake or the chicken sandwich for lunch. The Big Burger and the chicken sandwich were her two favorites. She chose the sandwich because she had more recently had a burger.
His choices:
His 1st choice:
His 2nd choice:
What was his opportunity cost?
Situation 2:
Jimmy went to a fruit store. He really wanted mangos, bananas, and strawberries. He only had enough money to buy one of them. He can’t eat mango because of an allergy. He decided to buy some bananas.
His 1st choice:
His 2nd choice:
What was his opportunity cost?
Situation 3:
Joe was shopping for a truck. He has looked at similarly priced Ford, Toyota, and Nissan models. After a lot of thought, he narrowed it down to either the Ford or the Nissan. He selected the Ford because he liked the color a little better.
What was his opportunity cost?
What is an opportunity cost?
the next best alternative
Four key components
of an opportunity cost example
Why does it matter?
1. It must be a situation where there are several (more than one) alternatives.
2. The situation must require a choice from among the several alternatives.
3. The decision-maker’s choice should be limited to one of the alternatives.
4. The decision is in the here and now. There should not be the choice to have another of the alternatives tomorrow.
Four key components
of an opportunity cost example
My opportunity cost example