Essay sample - Opportunity Cost: The Cost of Taking Time to Read

College
Essay
Miscellaneous
Pages 2 (502 words)
Download 0
The cost of Random House books, after an adjustment for inflation, has never been a bigger bargain. Yet, though their cost is as low as they have been in the past century, sales continue to slide. In a traditional business model, we would expect lower prices to increase sales…

Introduction

Reading is in competition for people's leisure time against a myriad of other activities. Family, sports, and entertainment all vie for those precious moments that the consumer has available, and these factors have added an escalating opportunity cost to the price of our books.
Opportunity cost implies making tradeoffs, and is considered to be the value of the alternatives that they have sacrificed by the decisions that they make (Wessels, 4). When considering the time it takes to read a book, the consumer must evaluate the value of their time. If time was unlimited, there would be no value placed on it, and there would be no opportunity cost. However, in this very busy world that we live in leisure time is scarce. In fact, it is this scarcity that has driven up the opportunity cost in recent decades. As activities compete for this scarce commodity, the value of it rises dramatically.
How does a consumer place a value on their leisure time In the business world, opportunity cost can be valued by considering other uses for existing capital and labor. On the individual level, this matter-of-fact calculation may be incomplete. Some experts contend that our leisure time is valued at the amount of money the individual could be earning in the next hour worked (Spotila). However, Donald B. Rosenfield of the MIT Sloan School of Management says, "Most people don't explicitly think about it. ...
Download paper
Not exactly what you need?

Related papers

Low cost airline
This actually began in US and then to Europe in 1990s and then gradually to the rest of the world (www.wikipedia.com).…
36 pages (9036 words)
Opportunity cost of corruption
The research is aiming to find the impact of corruption on the economy of the country and the people as individuals. What are the sources and consequences of corruption. The results are based on the empirical study and search work available on the Internet.The results of the study and research leaded to outcome that corruption is a global problem that exists at all levels. Corruption can be…
8 pages (2008 words)
Cost Leadership
Its lines of communication, management control systems, and compensation systems must all follow a functional or U-form structure where the CEO acts like an orchestra conductor who coordinates everyone and everything taking place within the firm. This ensures that all stages of the value chain contribute to the cost leadership strategy and that not a single employee or manager or operating process…
2 pages (502 words)
Cost Scenario
Balance 30,000 may be outsourced to the OEM at US$14. Here again, the variable cost has to be reduced to US$5. Lisa Morgan will forfeit the larger part of her bonus, but she will receive some bonus for running the factory at capacity.…
3 pages (753 words)
Cost Management
In the worst case, we can reduce the secretary to 1 instead of 2.…
2 pages (502 words)
Cost Accounting
The budget is not only the widely used instrument for managements planning but is also the fundamental accounting model of management control. The development of the budget requires the participation of many individual who are made responsible for the control of their planned costs within a company.…
2 pages (502 words)