A domestic listed company has idle funds of 50 million yuan. If it is used to purchase equipment, it can increase the profit by 5 million yuan in that year.

5000 x4% = 200 A domestic listed company has 50 million yuan of idle funds. If it is used to buy equipment, it can increase the profit by 5 million in that year. You can also deposit it in the bank and get a risk-free income of 4%. The opportunity cost of equipment purchased by the company is 2 million yuan, and the opportunity cost of deposit in the bank is 5 million yuan. The income of 5 million yuan is greater than the opportunity cost of 2 million yuan. Equipment should be purchased. Opportunity cost refers to the opportunity cost of decision-making when faced with alternative decisions of multiple schemes. The highest value of abandoned options is the opportunity cost of decision-making. Opportunity cost is also called substitution cost and substitution cost. Opportunity cost can be the opportunity cost for a commercial company to use certain time or resources to produce a certain commodity, and the opportunity cost is the opportunity cost of losing the opportunity to use these resources to produce other best substitutes.

1. Opportunity cost generally refers to one of the biggest losses after making a choice. The opportunity cost will change with the price paid. For example, when the preference or value of abandoned options changes, the value gained will not change the opportunity cost. If you give up the priority option with the highest value, its opportunity cost will be the first choice. When making a choice, you should choose the option with the highest value (the option with the lowest opportunity cost) and give up the option with the highest opportunity cost, that is. Opportunity cost usually consists of two parts: the opportunity cost of using other people's resources, that is, the monetary cost paid to the resource owner, which is called explicit cost. The cost of giving up other possibilities because of using one's own resources is also called hidden cost.

2. Prerequisites for opportunity cost economic analysis. The preconditions for applying the concept of opportunity cost to economic analysis are: scarcity of resources; Resources have many uses; Resources are fully utilized; Resources can flow freely. The example of opportunity cost is whether to study in the library or enjoy the happiness brought by TV series. Then the opportunity cost of reading and studying in the library is to enjoy the happiness brought by TV dramas less, while the opportunity cost of reading and studying in the library is to lose everything gained from reading and studying in the library. If a person owns a house, the opportunity cost of choosing to live alone is the income he can earn by renting the house to others. Because this opportunity cost does not involve actual currency transactions, it can also be called hidden cost. Opportunity cost and accounting cost are two different concepts.

3. Accounting cost refers to the monetary cost actually paid. Opportunity cost may or may not be equal to accounting cost. Under the condition of perfect competition, opportunity cost is equal to accounting cost; Under the condition of insufficient supply of goods (or production factors) and rationing system, the opportunity cost is higher than the accounting cost; In the case of overstocked goods or idle elements, the opportunity cost is lower than the accounting cost, or even zero. When the opportunity cost is higher than the accounting cost, the concept of opportunity cost is usually adopted.