Yoghurt : Explaining S, C and OP Costs PDG 03/12
Scarcity faced
Wants : UNI or OWN BUSINESS
RESOURCES : MONEY, TIME and ENERGY
These are ALL LIMITED
hence, with limited resources for unlimited wants, SCARCITY is present
therefore we can only choose to allocate our scarce resources to 1 of the choice.
but when we make a choice, there are opportunity costs involved!
Choice made
Yoghurt stall to be set up in AMK
After this choice has been made, there will be opportunity costs involved
Opportunity costs involved
Can't experience lifestyle in Uni
Will not obtain a Degree
Unable to find a job that yields a higher salary IF own business fails.
Lesser time for other things
eg. Self, family, friends, social life
Time dedicated to establishing own business
Time used to manage stall
Time used to research
IF business fails, he will be unable to find a well-paying job as his academic qualifications : only up to A LEVEL
If he wants a better job, he would have to enrol into a university for a degree or poly to obtain a diploma.
WASTE TIME AND $!!!
IF business fails, capital will be totally lost