Answer to Question #299513 in Economics for Chichi

Question

Opportunity cost is about making choices and how you adequately and effectively manage it.what do you understand by the concepts of intra and inter temporal choice models in managerial economics, further as a fresh graduate of Msc in managerial economics, clearly demonstrate how intra and inter temporal choice models make society incur an opportunity cost if not managed adequately and effectively?

Answer 1

Inter temporal choice refers to decisions, such as spending habits, made in the near-term that can affect future financial opportunities.

Intra intemporal is the choices that affect the current position.

Choice and opportunity cost are related to the degree that opportunity cost refers to the price of a choice made out of a number of available options. What this means is that opportunity cost is derived by evaluating the value of a choice in terms of another choice that must be forfeited due to the selected one.