Basic Agricultural Study

Menu
  • Home
  • Agronomy
  • Soil Science
  • Horticulture
  • Crop Botany
  • Entomology
  • Plant Pathology
  • Genetics and Plant Breeding
  • Biochemistry
  • Agri-business and Marketing
  • Agricultural Chemistry
  • Agricultural Extension
  • Ag. Economics
  • Post-harvest Technology
  • Agro-forestry
  • Ag. Statistics
  • Farm Mechanics
  • Job Oriented Course
  • Blog
Home
Agronomy
Principle of opportunity cost
Agronomy

Principle of opportunity cost

Musa May 4, 2018

Principle of opportunity cost

 
If an input is used in a particular production process, it has no alternative use at that particular point of time. This means that the input will be losing income from the alternative, use and this income foregone by this input from its alternative use is called opportunity cost. Opportunity cost is the value of the next best alternative sacrificed. Opportunity cost is the income that could have been received, if the input had been used in its most profitable alternative use. Suppose a farmer has one-ton commercial fertilizer. Suppose further that spreading it on his wheat field will add Tk.12000 to the total revenue from wheat, while spreading it on his onion field will add Tk.15000 to the total revenue from onion. If hefertilizes the onion, his opportunity cost is Tk.12000, because he has forgone to earn Tk.12000 to earn Tk.15000. If he fertilizes the wheat, his opportunity cost is Tk.15000, because he has foregone Tk. 15000 to Tk.12000.
Application:
This principle is applicable during
Share
Tweet
Pinterest
Email
Prev Article
Next Article

Related Articles

Best definition and salient feature of crops
  Best definition and salient feature of crops are given …

Best definition and salient feature of crops

Nutrient Deficiency symptoms in plants
Nutrient Deficiency symptoms in plants Nutrient Deficiency symptoms in plants …

Nutrient Deficiency symptoms in plants

About The Author

Musa

I'm studying plant pathology. I have completed my Bachelor of Science in Agriculture degree.

Leave a Reply

Cancel reply

You must be logged in to post a comment.

Basic Agricultural Study

About

This is a blog is about basic agricultural study. This blog helps those students who are want to achieve proper knowledge of basic agriculture degree B.Sc.Ag (Hons.). Read attentively and make yourself a good agriculturist and work for the nation.

Facebook page

Recent Articles

  • Cucurbitaceae, Gramineae, Solanaceae: General features and economic importance
  • External Morphology of Tea, Rice, Wheat, Sugarcane
  • Structure of protein
  • Plant Adaptations: Definition and Classification
  • Which mushrooms are edible: Best 9 types
Copyright © 2021 Basic Agricultural Study

Ad Blocker Detected

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by disabling your ad blocker.

Refresh