Business Operation

QUESTION 1.1 [pic] Because of Anns constant palm needs, her family would need to skillful 25 hours during the week when they be presently all at diddle. A rather suggest they should decide who give up work to circumspection for Ann during these hours on the basis of opportunity cost. gyp say what is meant by opportunity cost? OPPORTUNITY agree: opportunity cost is defend as the cost of doing or having something measured in term of the best alternative forgone. personal I D Number:B2816443 1.2 Calculate the opportunity cost, in pounds per week, of given 25 hours unpaid care per week during mean(prenominal) work time, for: a) Arthur, who has been told by his employer that he butt jointt persist his subscriber line if he doesnt put in the alike(p) hours that he currently does and who cant find any early(a) paid work that could feature with affectionateness. Arthur earns £25 per hour on his job. O pportunity cost for him to care for Anna for 25 hours would be: hourly rate * care hours = £25*25 Opportunity cost for caring for 25 hours = £625.00 per week. b) Sheila, whose employer bequeath allow her to reduce 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 lead declare to accept a reduction in hourly repair 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 b e: Hourly rate * care hours = £15! *25 Opportunity cost for caring for 25 hours = £375.00 per week. 1.3 Carers pay gives £53 per week to anyone caring for at lest 35 hours a week who earn less than £95 per week. Does this change both Sheilas or Arthurss opportunity cost of staying at kinfolk to care for Anna, bearing in mind that whoever does so will certainly be caring for Anna outside expression workings hours as well as for the 25 hours they are considering...If you wishing to get a full essay, order it on our website: OrderCustomPaper.com

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