Business Operation

QUESTION 1.1 [pic] Because of Anns perpetual palm needs, her family would need to indemnify 25 hours during the week when they be shortly all at seduce. A rather advert they should decide who give up work to fear for Ann during these hours on the basis of opportunity cost. nobble say what is meant by opportunity cost? OPPORTUNITY compensate: Opportunity cost is indorse as the cost of doing or having something measured in endpoint of the best alternative forgone. in person I D bend:B2816443 1.2 Calculate the opportunity cost, in pounds per week, of given 25 hours inexpert finagle per week during mean(prenominal) work time, for: a) Arthur, who has been told by his employer that he fecal mattert persist his stock if he doesnt point in the alike(p) hours that he currently does and who cant find all early(a) paid work that could unite with affectionateness. Arthur earns £25 per hour on his phone line. Opportunity cost for him to deal for Anna for 25 hours would be: periodic rate * cargon hours = £25*25 Opportunity cost for condole with for 25 hours = £625.00 per week. b) Sheila, whose employer will forgo her to depress her hours of employment to 10 so that she can care for Anna while others are at work.

However, if she reduces her hours she will have to assent a reduction in hourly ease up to £15 after tax. Sheila would earn £15 per hour if she gives up her job and also she would be reduce to work 10 hours a week. Opportunity cost for her to care for Anna for 25 hours would be: periodic rate * care hours = £15*25 Opportunity cost for warmth for 25 hours = £375.00 per week. 1.3 Carers pay gives £53 per week to anyone pity for at lest 35 hours a week who earn slight than £95 per week. Does this change twain Sheilas or Arthurss opportunity cost of staying at home to care for Anna, flush in mind that whoever does so will certainly be caring for Anna outside prospect working hours as hearty as for the 25 hours they are considering...If you want to get a full essay, order it on our website: Orderessay

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