Opportunity, direct and indirect costs Assignment

Opportunity, direct and indirect cost - Assignment ExampleSuppose I headstrong to watch the Brazil Argentina match at the expense of watching England-Germany match. Using modern technologies, I can definitely record the England-Germany at the time of watching the Brazil Argentina match. In this case, I am reducing the opportunity cost of losing the live telecast of England-Germany match. However, it is quite assertable that the England-Germany match was more than interesting and the Brazil Argentina match was quite boring. In this case, the indirect costs (foregone opportunities) are greater than the direct (out-of-pocket) costs. Suppose I am going for a tour in a rented car. hazard the rent for the car per day is $1000. If I go alone, I have to even out the whole measuring rod myself. On the other hand, if I go along with three other colleagues, I have to pay provided 250 dollars per day. In the first case, the marginal cost was $ 1000 whereas in the second case it was onl y $250. In short, the marginal cost of renting a car will be reduced intimately if the number of passengers increases. It should be noted that if I rent the car alone, $ 750 will be wasted as sunk cost. I am reducing the opportunity cost of losing the live telecast of England-Germany match. However, it is quite possible that the England-Germany match was more interesting and the Brazil Argentina match was quite boring. In this case, the indirect costs (foregone opportunities) are greater than the direct (out-of-pocket) costs. Opportunity cost of an activity is usually calculated based on the next best alternative of that activity.