Opportunity cost is defined as the value of something given up to achieve or acquire something elseRoberts, 2007). In a household setup,where mothers choose not to work outside the homedoforgo different courses of action.Various factors do manipulate how the opportunity cost is viewed in a household setup.
Higher levels of education for women would increase the opportunity cost when they choose to work inside the home. An educated woman who chooses to work at home will have forgone a lot to enable this to qualify. Costs such as meeting new faces and new business ideas will be a thing of the past. On the other hand,higher unemployment rates for women would decrease the opportunity cost experienced. Unemployment means that these women will be spending their time indoors mostlyleaving no room for what will be possible of increasing the opportunity cost.
Higher average pay levels for women will decrease the opportunity cost in a household environment. Such women will have chosen an alternative that will end up been cheaper than if they opted to work outside home.Lastly, lower demand for labor in industries that used to employ large numbers of women will end up decreasing the opportunity cost encountered. It will be evident that few women will be needed in such industries when their demand is lower hence, the value of the forgone cost will decrease.
It is evident that when an alternative is chosen, a cost is forgone too. Various causes of these alternative to be chosen will either lower or raise such opportunity cost.
Get Your Custom Paper From Professional Writers. 100% Plagiarism Free, No AI Generated Content and Good Grade Guarantee. We Have Experts In All Subjects.
Place Your Order Now