14 Analyse one way in which considering opportunity cost can help a business make better decisions.

[Qasim_Mahmud]

Kn:Skilled workers are scarce because they are limited
App:Limited skilled workers may cause efficiency
Ana:Forcing the company to use their workers in the most efficient way possible

[Dania Farooq]

(KN): Opportunity cost is about making better use of scarce resources by comparing what is given up when a choice is made.
(APP): For eg, a business might choose to use its factory to produce its most profitable product rather than less profitable ones.
(AN) this helps businesses increase efficiency as they're directly using the most imp resources for them, so less wastage and allows them to stay competitive.

[Areeba Arshad]

[KN] Considering opportunity cost helps a business allocate resources more effectively.
[APP] For example, a company may choose to use its factory to produce its most profitable product instead of a less popular one.
[AN] This helps because the factory is used in the best possible way. The business avoids wasting time and money on less profitable products, and it earns more profit overall.

[sarah_naeem]

(KN) Opportunity cost is the advantage of the next best option that is given up when making a decision.
(APP) For example, a clothing business may have to choose between using its limited storage space for winter coats or clothes worn more in the summer, like T-shirts.
(AN) By looking at the opportunity cost, the company can pick the choice that gives it the best return or profit. This helps them better use their resources and avoid missing out on chances.

[Areeba Arshad]

[KN] Considering opportunity cost helps a business allocate resources more effectively.
[APP] For example, a company may choose to use its factory to produce its most profitable product instead of a less popular one.
[AN] This helps because the factory is used in the best possible way. The business avoids wasting time and money on less profitable products, and it earns more profit overall.

[Ayaan Fayaaz]

[KN]Considering opportunity cost helps a business weigh up the potential benefits of one option against what must be sacrificed.

[APP]For Instance, a business with £50,000 could either invest in new machinery to improve efficiency or spend it on an advertising campaign to increase sales.

[APP]By evaluating the opportunity cost, the business can judge which option brings the greater long-term benefit. If the machinery reduces costs per unit more significantly than advertising boosts sales, the business can make a more rational and profitable decision. This reduces the risk of wasted resources and improves overall competitiveness.

[Ayaan Fayaaz]

[KN]Considering opportunity cost helps a business weigh up the potential benefits of one option against what must be sacrificed.

[APP]For Instance, a business with £50,000 could either invest in new machinery to improve efficiency or spend it on an advertising campaign to increase sales.

[APP]By evaluating the opportunity cost, the business can judge which option brings the greater long-term benefit. If the machinery reduces costs per unit more significantly than advertising boosts sales, the business can make a more rational and profitable decision. This reduces the risk of wasted resources and improves overall competitiveness.

[Abdur Rehman khan]

[KN] By Opportunity cost business consider that what it will lose when it chooses one option instead of another. This helps it decide where its resources will be used best.
[APP] For example, if a factory have choice either to produce Product A or Product B so it may choose the one with greater benefits.
[AN] This means the business can maximize returns from its resources, avoid wastage on less profitable option and improve overall efficiency.

[Arham Qadri]

[KN] It helps business decide the best use of resources
[APP] for example before launching football shoes or football shirt the business will do its research for both choice to see which one will be more profitable hence the business would launch that product that which customers will demand the most
[AN] Hence this will increase profit, sales and will increase market share

[M huzaifa jillani]

(KN)
Oppurtunity cost means the next best choice that is given up when a decision is made.
(APP)
For example, if a business has money to buy either new machines or open a new shop, it must think about which choice gives more benefit.
(AN)
By considering Oppurtunity cost , the business can choose the option that brings more profit or growth instead of wasting resources on the less useful choice. This helps it make better decisions.

[amaimatif]

Considering opportunity cost helps a business allocate resources more effectively. For example, using a factory to produce its most profitable product instead of a less profitable one ensures efficiency. This allows the business to maximise returns on its assets and improve overall performance.

[Haiderabbas]

KN: Considering opportunity cost helps businesses compare benefits of alternatives and choose the most profitable option so resources are used more efficiently .

APP: for e.g... a cafe chooses between adding delivery or opening a second branch by comparing expected returns.

AN: This prevents wasted resources on low-value projects and improves long-term performance and maximises profits, though estimates can be uncertain.

[SofiaRazaKhan]

[KN] considering opportunity cost helps a business decide how to use its limited resources to get the most benefit.
[APP] eg a restaurant might choose between spending money on new kitchen equipment or advertising to attract more customers
[AN] this helps the business focus on the option that brings more profit and avoid wasting money on less useful choices.

[Ruqyia Salman]

[KN] Considering opportunity cost helps a business make better decisions by allowing better allocation of limited resources.
[APP] For example, a company may decide to use its factory space to produce its most profitable product instead of a less profitable one.
[AN] This ensures the business maximises its return on assets and achieves higher overall profitability.

[masabtahir]

kn] oppurtunity cost can do it beacuse considering both options in one phase together'
app] for example a factory want to buy a new plot or upgrade machinery in the same unit
an] so he will be looking which would be more creative efficient and productive for their factory in future and what are the benefits of owing one thing over other and drawbacks of oppurtunity cost