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Opportunity Cost
This phenomenon goes by the name of ‘opportunity cost,’ since by not investing in more equipment and a more rigid production flow, the company is forgoing the opportunity to earn increased profits. These costs are every bite as real as the payment of dollars out-of-pocket.
This notion _______ opportunity cost can be reinforced _________ a famous saying ______ Benjamin Franklin, no slouch himself _________ operations management. To make the point, however, we must make a brief excursion into logic. One truth of logic is the validity of the so-called contrapositive, which says simply that if the statement “If A, then B” is true, then it is also true that “If not B, then not A.” That is, of every time A occurs B follows, then we can be sure that if B does not occur, then A did not occur as well. Enough logic then, and back to Ben Franklin.
One of his Poor Richard sayings is that “A penny saved is a penny earned.” We have all recognized the truth of that since childhood, but I assert that by this saying Ben showed us he knows everything about opportunity cost. After all, what is the contrapositive of “A penny not earned is a penny not saved (i.e., a penny sent). All we are saying by this notion of opportunity cost is that “a penny not earned (an opportunity forgone) is a penny spent.” We shall often have occasion to consider opportunity costs, in analyzing and deciding various operations issues.
SCHMENNER, Roger W. Production/Operations Management. 5th
Edition. Prentice-Hall, 1993.
__________ is your birthday?
It is ________ November.
Great! We ________ celebrate together.
I – ….. are their names? They’re Melissa and Andrew. II – ….. is my bag? On the table. III – ….. is it difficult? It is so easy. IV – …… did you do that? Because I wanted it. V – ….. was your last vacation? It was on January.
I. _____ was this house built? In 1980. II. ______ hit you? Martha’s brother hit me. III. __________ do you study English? Twice a week. IV. __________ sisters do you have? Two. Their names are Paola and Marianne. V. __________ is your school? Only 2 Km.
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Published in 1981, Todd Strasser’s The Wave recounts a true incident that took place in a history class at a Palo Alto, California, high school in 1969. The teacher of the class, Ron Jones, (1)__________ is fictionally renamed Ben Ross in the book, actually formulated the experiment described in the narrative in an effort to help his students understand how the Holocaust could have happened without the mass condemnation of the German people. What begins as a simple class project quickly takes on a life of its own, (2) __________, as students conform mindlessly to the experimental system, and others are pressured ruthlessly to join in. Group dynamics and peer influence bordering on coercion create a sinister atmosphere of fear and mistrust, The Wave spontaneously takes on the characteristics of a cult. The event disrupts an entire school (3) __________ raises a plethora of dark questions concerning responsibility, freedom, and group dynamics. Ron Jones calls it “one of the most frightening events ever experienced in the classroom.” As a novelization of a teleplay by Johnny Dawkins, based on a short story by Ron Jones, Strasser’s book (4) __________ not have attracted an abundance of criticism as a literary entity in itself, (5) __________ The Wave clearly holds an important place in the canon of young adult literature. (…) Available at: <http://www.enotes.com/topics/the-wave/critical-essays>. Accessed on: 20 set. 2016
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